A leading construction industry trade body has called for a radical overhaul of infrastructure procurement to deliver the 15% p.a. savings demanded by the Treasury. The Specialist Engineering Contractors’ (SEC) Group has submitted a 13 – point action plan for inclusion in the implementation plan for reducing infrastructure costs.
The 13 actions are each allocated to the five improvement objectives set out in the Infrastructure Cost Review report published by HM Treasury/Infrastructure UK in December 2010 (see attached diagram).
SEC Group’s chief executive Professor Rudi Klein said that it was impossible to deliver modern cost efficient infrastructure projects using nineteenth century procurement strategies.
“The fundamental change required is the appoint ment of integrated project teams – consultants, contractors, manufacturers – at the outset of projects to buy in to the decisions on design and risk and, most importantly, to the cost plan which should be underwritten by project insurance.”
“ Funding of infrastructure projects should be conditional on the agreed cost plan being insured.” The infrastructure implementation plan will be published next month.