Minister for the Cabinet Office Francis Maude is to publish the Government’s One Year On report, highlighting progress made in reforming public sector construction and detailing £279m in savings for taxpayers.
The Government aims to save up to £1.2bn a year in construction – the equivalent of approximately 60 new secondary schools – to spend on other projects.
The One Year On report highlights key progress over the year since the Government’s ambitious five-year construction strategy was launched, including:
•£279m cost reductions achieved on new contracts and projects registered during 2011/12;
•The beginning of a technological revolution, with the first public sector project delivered through Building Information Modelling, now under way at Cookham Wood prison;
•Strong relationships with industry, with over 120 private sector representatives playing an active role in implementing the strategy;
•Increased transparency via regular publication of construction spending plans and project pipelines; and
•Prompt payment extended down to tier three suppliers via Project Bank Accounts for £1.1bn worth of projects, which pay tier three suppliers at the same time as prime contractors.
The report details key areas of focus for the coming years, with a fresh push on treatment of companies in the supply chain, including SMEs, and a new policy to tighten supplier performance management for key strategic suppliers.
Mr Maude said: “I’m proud of the progress that this Government has made as we go through an era of fundamental reform in construction.”
The Government’s Chief Construction Adviser, Paul Morrell, said: “The change will not come overnight - we are dealing with generations of ingrained practice - but just one year on I believe we are making real progress, both in the Government’s determination to see through this strategy and in the industry’s response.”
The Government has published an updated list of 32 trial projects, including 12 new trial projects.
