Procurement cost cuts 'highly achievable', says SIG chair
Posted by APM on 30th Jun 2011
A new Construction Strategy will reform the way in which government procures construction across all sectors, and in doing so will reduce costs by up to 20 per cent by the end of this parliament, according to Minister for the Cabinet Office, Francis Maude.
Dr Jon Broome, chair of APM’s Contract and Procurement Specific Interest Group, welcomed the news, saying it would build on ‘the pockets of really good practice’ in terms of procurement already within the public sector.
“These proposals should spread and advance that good practice across the industry. The 20 per cent cost reduction across the board is a tough target, but from projects I’ve been involved in, it is definitely achievable.”
To provide effective co-ordination and alignment of procurement across the Government’s construction and infrastructure programme a new Government Construction Board, chaired by Paul Morrell, the Government’s Chief Construction Adviser, will be established.
He said: “The strategy sets out challenging new ways of working that will deliver considerable benefits not only to the taxpayer, but also enabling growth in the industry and better understanding of the future direction for public sector construction.”
A steering group drawn from Government and industry will be established to provide industry joint leadership in implementing this Construction Strategy.