Abstract
The Government Construction Strategy (2011) set out to achieve savings in construction procurement of up to 20%. Reforming procurement practices to effect behavioural and cultural change underpins this effort. The Industrial Strategy for Construction (Construction 2025) reemphasises Government’s continuing commitment to this effort. The context to this initiative has been set out in “New Models of Procurement – Introduction to the Guidance”.
Three new models of construction procurement (Cost Led Procurement; Integrated Project Insurance; Two Stage Open Book) have been trialled. Guidance for each describes the ‘how to’ in adopting the model to aid clients in the public sector, bringing together best practice and behaviours of leading practitioners to help generate savings being sought by Government. If clients and suppliers want to achieve the same level of outcomes demonstrated by the trial projects, then the steps and techniques set out in the guidance will help them to achieve this.
Through evolution rather than revolution, these models offer the potential to achieve efficiency gains that can be released for reinvestment, create new employment and industry activity, make projects more affordable and fundable, and make the UK construction industry more competitive.
Three new models of construction procurement (Cost Led Procurement; Integrated Project Insurance; Two Stage Open Book) have been trialled. Guidance for each describes the ‘how to’ in adopting the model to aid clients in the public sector, bringing together best practice and behaviours of leading practitioners to help generate savings being sought by Government. If clients and suppliers want to achieve the same level of outcomes demonstrated by the trial projects, then the steps and techniques set out in the guidance will help them to achieve this.
Through evolution rather than revolution, these models offer the potential to achieve efficiency gains that can be released for reinvestment, create new employment and industry activity, make projects more affordable and fundable, and make the UK construction industry more competitive.
Original language | English |
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Publisher | King's College London |
Pages | 1-62 |
Number of pages | 62 |
Publication status | Published - 2014 |