Coalition to save £3bn in infra costs
In its first annual report as part of the three year Infrastructure Cost Review, it has identified savings of up to £1.5bn through improved behaviours and practice.
The work represents evidence of good progress towards the overall objective of £2 to 3bn savings per annum by 2015, said the Treasury in a statement.
Over £600m will be found on the 20 major projects being delivered by the Highways Agency by managing projects more strategically and with a more efficient supply chain and over £400m through London Underground works.
Peter Hansford, chair of the cost study’s Infrastructure Steering Committee, said: "I have seen close, constructive working between government, clients and industry to achieve the goals. The National Infrastructure Plan and future pipeline of funded infrastructure have improved visibility for industry and provide a platform for change in procurement practice that will help achieve cost savings."
The Commercial Secretary to the Treasury, Lord Sassoon added: "Every pound saved through this Cost Review programme is a pound more that can be spent on new infrastructure for the UK."
Crossrail and High Speed 2, as part of the government’s 40 priority projects, are two of a number of schemes that will benefit from savings.