Government brings down infrastructure costs for third year running

Infrastructure Uk

July 15
07:00 2014

Today (15/07/14) the government is publishing the third annual report of the Infrastructure Cost Review programme, launched in March 2011 to transform the way the UK delivers infrastructure.

The Infrastructure Cost Review in 2010 set out a series of actions to change the behaviour of government clients and industry that would support a 15 per cent reduction in the costs of infrastructure delivery.

This years report demonstrates significant improvements arising from more collaborative behaviour, and identifies over 3 billion per annum of cost savings. That equates to savings averaging over 15 per cent across infrastructure sectors.

The report shows we are on track to meet the objectives set out in 2010. At the current rate of saving, there is an opportunity to deliver efficiencies for taxpayers and consumers of more than 50 billion over the next decade.

The Project Initiation Routemap Handbook was also launched today alongside the Cost Review annual report, which provides a framework to help identify and address many common and recurring problems in infrastructure projects.

Commercial Secretary to the Treasury, Lord Deighton said:

Successive governments have failed to invest sufficiently in the UKs infrastructure. By dealing with our debts and having a long term vision as set out in the National Infrastructure Plan, we can deliver the world class infrastructure the UK needs to compete. Delivering infrastructure investment more efficiently is vital to ensure that taxpayers and consumers get more for less.

The Infrastructure Cost Review programme has helped to establish a refreshed relationship and more open dialogue between government and industry. This has been a success for the third year running. However, we cannot be complacent. As the economy recovers, we will redouble our efforts to ensure that we have the necessary skills, capacity and innovation to embed cost and efficient delivery.

Simon Kirby, Chair of the Infrastructure Client Group, said:

I welcome the involvement of clients and industry delivering the Cost Review objectives and the development of the Project Initiation Routemap. Focussing on matching capability with complexity and the enablers of successful delivery will significantly improve project outcomes. The Infrastructure Client Group looks forward to supporting the forward programme of the Cost Review and implementation of the Routemap. We will continue to provide a forum for clients to share experiences and best practice t

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