Cutting the cost of construction.

Supply chain innovation to drive cost-cutting

Published:  02 June, 2011

LONDON: The construction industry needs to show "cost reduction and innovation within the supply chain" according to Government Construction Strategy, which was  published yesterday.

Under the plan, Francis Maude, minister for the Cabinet Office, wants to reform the existing system with a Construction Board to drive changes aimed at finding 20% cost savings on building projects.

Paul Morrell, the present construction adviser, will chair the new Government Construction Board.

It was described as an evolution of the existing Construction Clients Board, but will have a wider membership through Government departments and utility regulators. It will also oversee the implementation of the Infrastructure Cost Implementation Plan and the Government's responses to the James Review and McNulty Review.

Mr Maude said: "These savings are not only significant but long overdue. The commitment to reduce the cost of construction by 20% is no small thing, but it will help the Government and the construction industry.

"This strategy will stimulate growth by enabling more to be constructed within the funds available."

The industry has welcomed the new strategy.

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