Poor Project Planning ‘Could Cost UK £23bn’

Poor Project Planning ‘Could Cost UK £23bn’

Ineffective planning and delivery of infrastructure projects around the country could cost the UK some £23 billion over the next decade, with research revealing that up to 80 per cent of large schemes globally are delivered late and over budget, before then under-delivering on benefits.

International construction and consultancy company Mace’s latest Insights report – A Blueprint for Modern Infrastructure Delivery – infrastructure has long been recognised as having an important role to play in stimulating the economy and, following the coronavirus crisis, it is now more important than ever in the drive towards growth and prosperity.

Infrastructure is now being positioned by many governments around the world as pivotal in the recovery from the pandemic and, as such, it is vital that the UK starts to deliver major projects and programmes more considerately, cost effectively and more efficiently.

The report went on to note that this will mean greater effort is required to bring in more innovative processes, such as modern methods of construction. It will also be necessary to see greater push towards decarbonisation across all sectors in order to ensure a positive legacy is left for future generations.

CEO for consultancy at Mace Jason Millett said: “With COVID-19 placing greater emphasis on the importance of infrastructure as an economic multiplier, it is more important than ever that we get this right.

“Our major projects and programmes must have clarity of direction and outcome-focused decision making to ensure they do not become a burden, but rather an enabler for post-pandemic growth.”

A series of key recommendations were made in the report to help rectify the situation, including changing how the sector runs procurement, bringing in independent scrutiny panels for big projects and spending more money initially to ensure the schemes are properly examined and planned.

Last month (December), the government unveiled its Construction Playbook, detailing how it plans to reform and modernise the way in which work is carried out.

Specific measures include standardising designs and parts, embedding digital technologies, incentivising innovation by focusing on the output of what a project aims to achieve and long-term plans for key programmes, such as longer-term contracting.

Developed in consultation with the construction industry, the Playbook also outlines green initiatives for the sector to minimise greenhouse gas emissions for projects. This includes promotion of the use of carbon assessments to understand and reduce emissions of the work due to be carried out.

Cabinet Office minister Lord Agnew commented at the time, saying that the government is in the perfect position – as the biggest customer in the construction industry – to make sure that it is productive and professional, while delivering taxpayers value for money.

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