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Industry fails to tap Egan benefits

NEWS

CONSTRUCTION IS missing out on clear and tangible business benefits by failing to embrace the principles of Sir John Egan's Rethinking Construction report, according to figures published this week.

Statistics produced by the government's Movement for Innovation showed that its 67 best practice demonstration projects were more efficient than the industry average.

Thirty of the projects are civils jobs.

The figures show significant improvements in project time, cost, profitability and safety and client satisfaction compared to the industry performance as a whole.

On safety, the demonstration project accident rate in 2000 was 619 per 10,000 employees, almost half the industry average of 1,088.

The industry as a whole produced higher levels of defects on projects, while demonstration projects showed an improvement.

Meanwhile, 67% of demonstration projects came in early or on time at design stage and construction work was completed early or on time on 69% of them.

Client satisfaction figures also showed a 12% year on year improvement while average profit margins before interest and tax increased to 7%, compared to 5.5% for the industry overall.

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