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Contractors lag behind on time and money

HALF OF all contractors failed to reduce their construction costs in 1997/1998, according to figures published by the Department of the Environment Transport and the Regions on Tuesday.

Fifty one per cent of contractors also failed to deliver projects on time, according to the DETR. The figures are among the first set of key performance indicators to be published annually by the DETR as part of the Government's efforts to promote efficiency in the construction industry.

They also show that on average construction programmes overran by 8% last year, while costs overran by 1%.

The ten key performance indicators will be used by firms participating in the demonstration projects, set up to demonstrate best practice in construction following Sir John Egan's Rethinking construction report.

The KPIs measure the industry's performance in areas ranging from client satisfaction, defects, safety, and delivery to time and budget and should encourage clients to award contracts on service, value for money and whole life cost rather than lowest price.

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