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Construction Industry Council Economic Forum Stephen Dance

Construction Industry Council Economic Forum Stephen Dance. The Vision for UK infrastructure. maximising the potential of existing road and rail networks; transforming energy and transport systems to deliver a low carbon economy; transforming the UK’s strategic rail infrastructure ;

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Construction Industry Council Economic Forum Stephen Dance

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  1. Construction Industry Council Economic Forum Stephen Dance UNCLASSIFIED

  2. The Vision for UK infrastructure • maximising the potential of existing road and rail networks; • transforming energy and transport systems to deliver a low carbon economy; • transforming the UK’s strategic rail infrastructure; • meeting future challenges in providing sustainable access to water for everyone; • protecting the economy from the current and growing risk of floods and coastal erosion; • reducing waste and improving the way it is treated; • providing the best superfast broadband in Europe; and • ensuring that the UK remains a world leader in science and research. UNCLASSIFIED

  3. IUK Infrastructure Cost Review • Objective: To help close the infrastructure investment gap by finding ways to reduce UK infrastructure delivery costs • 300 organisations contacted, 120 interviews, specialist groups from industry, clients and wider market engaged • c.70% UK infrastructure delivered by the private sector. • c. 60/40 of expenditure on capacity enhancement/maintenance and renewal. • Weight of evidence confirms the UK is more expensive than European peer group. • Total construction on infrastructure estimated at £15 billion + per annum • Opportunity to realise savings of at least 15% • Programme of actions to deliver £2-3 billion per annum of sustainable benefits UNCLASSIFIED

  4. Drivers of higher cost – policy and systemic issues • Urban density: • >70% of infrastructure construction in the UK is on brownfield land • age of assets, e.g. 70% of Network Rail bridges >100 years old compared to 26% average across Europe • Planning and statutory consultation processes • Regulatory compliance and third part influences on cost (e.g. environmental compliance) • Lower costs of labour in some Eastern European countries (BUT generally the UK cost of labour is comparable to its Western European peer group) UNCLASSIFIED

  5. Drivers of higher cost - funder and client issues • Stop-start investment • Poor governance and ineffective incentivisation of cost control • Poor asset information and cost data • Over-specification • Commercial issues and procurement processes • Project insurance UNCLASSIFIED

  6. Drivers of higher cost - supply chain issues • Poor supply chain integration • Lack of investment for innovation • Need to improve skills and training • Low productivity • Construction logistics UNCLASSIFIED

  7. Improvement objectives UNCLASSIFIED

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