Press Releases

Government Celebrates Success and Sets New Strategic Targets for Construction Procurement - Paul Boateng

Government Celebrates Success and Sets New Strategic Targets for Construction Procurement - Paul Boateng

Released on 26 February 2003

The Government has given itself and the construction industry two years to meet tough but achievable new targets aimed at further improving the delivery of construction projects and to accelerate project progress at procurement stage, Chief Secretary to the Treasury, Paul Boateng announced today.

Today's targets are on the back of the success of the first three years of the Office of Government Commerce's Achieving Excellence in Construction initiative, launched three years ago.

By March 2005 the Government wants to see:

• 70% (by volume) of construction projects reaching benefits evaluation (Gate 5) in the period 1 April 2003 - 31 March 2005 to be delivered:

-On time

-Within budget

-To exceed consumer and stakeholder expectations

-With zero defects;

• For each key sector to reduce the average time period from start of procurement (Gate 2) to award of contract (Gate 3) by:

-25% for construction projects taking over a year between Gates 2 and 3, and

-15% for all other construction projects.

Launching the Office of Government Commerce's 'Achieving Excellence in Construction Building on Success' conference at the Intercontinental Hotel, Park Lane, London, Paul Boateng said he wanted to see successful companies working with the government to build new schools, hospitals, roads and public facilities.

In a pre-recorded Keynote Address, Paul Boateng said:

"The government and OGC are committed to improving construction procurement performance.

Today's conference is all about improving delivery of public services by improving construction procurement - better schools, better hospitals, better roads.  That is the ultimate objective and it should always be at the forefront of our minds.

The first three years of Achieving Excellence in Construction have been a success. Today's launch is not heralding a new initiative - it is about an integration of existing approaches, a mainstreaming of existing best practice, building on and reinforcing the success we have already had.  This strategy details the strategic targets that the OGC itself and government departments will be expected to deliver over the next three years.

They are challenging targets and, inevitably, rely on the client and the supply team working together in partnership to maximise benefits and deliver those quality, value for money outcomes we all want to see.

There is no time for delay.  We are already committed, through the 2002 Spending Review to provide substantial new resources to improving UK infrastructure.  For the construction industry that means there are contracts to be fought for and work to be won."

NOTE TO EDITORS

The Achieving Excellence in Construction initiative was launched in March 1999 to improve the performance of central government departments, their executive agencies and non-departmental public bodies (NDPBs) as clients of the construction industry.

It put in place a strategy for sustained improvement in construction procurement performance and in the value for money achieved by government on construction projects, including those involving maintenance and refurbishment.

The Achieving Excellence initiative set out a route map with challenging targets for government performance under four headings:  management, measurement, standardisation and integration.

Targets included the use of partnering and development of long-term relationships, the reduction of the financial and decision-making approval chains, improved skills development and empowerment, the adoption of performance measurement indicators and the use of tools such as value and risk management and whole life costing.

The key thrust of Achieving Excellence is the delivery of best value for money.  This is not the lowest cost but the best balance of quality and whole life cost to meet the user requirement.

Press Enquiries:  David Prior or James Worron at OGC Press Office.