The latest savings report for central Government spending departments shows it is now on track to deliver its 15%-20% savings target set for the end of this Parliament.
When the cost efficiency drive was first launched in 2011/12, it clawed back £72m. This was achieved at just two reporting departments – education and transport – and represented 13% of their overall construction spend.
In 2012/13 savings of £447m were won from projects, equating to 15.6% of the £2.4bn reported spend.
The latest figures for 2013/14, see Government savings rise to 19.6% of £3.5bn of recorded construction project spending.
Education Funding Agency and Highways Agency are well advanced on their cost-reduction programmes and delivered the lion’s share of improvements.
The Government also said open book two-stage tendering will also be put under the spotlight for its cost reduction potential.
The Wrexham prison contract won by Lend Lease is now subject to an in-depth study alongside a 22 schools project cluster secured by Osborne, Miller and Balfour Beatty using the IESE Framework.
Both schemes are already achieving significant savings during procurement and are likely to pave the way for a major shift in central Government procurement practice.