The Government has delivered cost savings of over £3bn on infrastructure projects since 2010, according to the third annual report of the Infrastructure Cost Review.
Four years ago, the Government announced a target of saving 15% on the cost of infrastructure delivery – which it appears to have achieved with the £3.4bn of savings reported today.
The best performing sector was energy, which recorded savings of almost £1.2bn – or 24%.
The report identifies “significant improvements arising from more collaborative behaviour”.
It said: “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 full report can be viewed here.
The Government also launched the ‘Project Initiation Routemap Handbook’ with the 2014 report, which provides a framework to help identify and address many common and recurring problems in infrastructure projects.
Treasury Minister Lord Deighton said: “Successive governments have failed to invest sufficiently in the UK’s 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, chairman 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 to support successful infrastructure delivery in the UK.”