21 December 2010
Up to £3bn a year can be saved in infrastructure costs if the public and private sectors follow actions set out in a government report, its authors have claimed.
The blueprint, published by Infrastructure UK today, outlines how building and maintenance costs for transport, energy, waste and flood defence projects can be reduced. It is the outcome of a review announced in the June Budget to determine how the cost of carrying out civil engineering work can be reduced.
Among its recommended actions are: more certainty about future work; being clearer about the governance of projects, such as which party is responsible for what; and better commissioning.
Chief Secretary to the Treasury Danny Alexander said the example of the London Olympics demonstrated that big infrastructure projects could be delivered on time and to budget.
‘We just have to make sure that the rest learn from the best,’ he said.
Alexander added that the IUK’s cost-reduction work meant between £400m and £800m could be saved from the cost of the High Speed 2 rail line.
Terry Hill, leader of Arup’s Global Transport market, chaired the investigation steering group. Launching the report today he said the savings outlined in it were ‘achievable’.
‘Evidence from the investigation suggests a high degree of consensus that efficiency improvements can be achieved and that the infrastructure construction industry will respond positively to client-side improvements in planning, commissioning and procurement of projects and programmes. Clients will respond in turn to improvements in industry by becoming more efficient and transparent,’ Hill said.
A plan setting out how the actions will be implemented will be published ahead of the next Budget.
