Construction sector will be seeing changes

CIPS 3 June 2011

Francis Maude aims to change the way government procures construction.

Francis Maude is looking to change the way in which the government procures construction with the publication of the Government’s new Construction Strategy today.

The detailed strategy, to be implemented across all sectors, will aim to reduce procurement costs by up to 20% by the end of this parliament, helping both the government and the construction sector. An efficient construction industry is essential to the UK economy and the need for reform of public sector construction procurement will improve value for money to taxpayers and enable the construction industry to focus on bringing forward innovative solutions.

Francis Maude, Minister for the Cabinet Office 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.

“I fully support the challenge that the Government’s Construction strategy sends out to the public sector and to the construction industry. The public sector needs to be a better, more informed and strategic client. The construction industry, in turn, will benefit from a more collaborative working relationship with the public sector, allowing for innovation, increased efficiency, and delivering better value for money."

The CIPS construction procurement group welcomes the strategy, saying, “It is really positive to see that the UK Government is willing to take cognisant of the feedback within its own organisations to assist in becoming a leader in the procurement of future construction projects. The private industry has been facing this challenge since the end of 2008 and has in many ways been ahead of game when it comes to increasing focus on procurement strategies and fit for purpose routes to market.

The fact that the Government now recognises that to achieve growth in the current market then the procurement practices that they employ must be first of all seen as significant contributing factor and that secondly synergies and savings must be identified and delivered to achieve the desired results. As the CIPS CPG and representing the wealth of the construction procurement fraternity we hope that the government organisations and buying agencies continue to engage with us on a collective and individual basis for us to have a voice as to the way forward for the future of the industry that we represent”

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