[wdmmg-discuss] interesting article on gov efficiency in infastructure

[Tim Hubbard]

http://www.ft.com/cms/s/0/5dc40ee6-7fa6-11df-91b4-00144feabdc0.html


I heard a similar story at a policy meeting I 
went to recently - again quotes that things like 
railways and nuclear power stations cost 2x to 
build in UK than in comparable EU countries. 
Why? One raw number I heard was that if you 
compare CrossRail and Madrid metro (apparently 
comparative scale) you find 400 people managing 
the project in Matrid and 1200 on CrossRail. 
Contracting and subcontract structure in UK was 
suggested as one source of increased costs.  An 
interesting sub issue for wdmmg to watch perhaps.

Best wishes,

Tim

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In case you are blocked by the paywall:

Government review to seek infrastructure savings

By Nicholas Timmins Public Policy Editor

Published: June 24 2010 16:52 | Last updated: June 24 2010 16:52

A wide ranging review into why the cost of major 
infrastructure projects is so much higher in the 
UK than among some of its key competitors has 
been launched by the government.

Terry Hill, until recently chairman of Arup and 
who now heads its transport division is to 
examine almost everything short of sources of 
finance that affects the cost of civil 
engineering from water, energy and other 
utilities to roads, rail and other forms of big 
infrastructure.

Mr Hill said UK construction costs are 
unquestionably higher than those in key 
continental competitors such Germany, France and 
Spain. There was, he said, a debate about the 
size of the gap - some studies pointing to a 10 
to 20 per cent difference, others suggesting 
double the cost on particular projects.

"But there is no question that they are higher 
and our goal is to find ways of reducing them". 
That would range from the cost of plant, labour 
and materials, to the costs of design, 
procurement and all the regulation, from health 
and safety to planning and standard setting, he 
said.

With total spending on infrastructure expected to 
reach about £400bn over the next five years or 
so, "even a relatively modest 10 per cent saving 
would be a serious sum," he said.

The study is being conducted under the auspices 
of Infrastructure UK, the Treasury based body on 
whose advisory council Mr Hill already sits. It 
is bringing in support from a key range of 
figures in the construction industry.

One allegation he would like to get to the bottom 
of, he said, is that EU procurement rules are 
applied in a more gold-plated and expensive way 
in the UK than in other countries. "You hear 
anecdotes, but the rules are the same everywhere, 
so that shouldn't happen".

Initial findings will play in to the autumn's 
comprehensive spending review. But work will 
continue until at least the end of the year and 
possibly later if the review finds that 
legislative or regulatory changes are needed..

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Dr Tim Hubbard                         email: th at sanger.ac.uk
Wellcome Trust Sanger Institute        Tel (direct): +44 1223 496886
Wellcome Trust Genome Campus           Tel (switch): +44 1223 834244
Hinxton, Cambridgeshire. CB10 1SA.     Fax: +44 1223 496802
URL: http://www.sanger.ac.uk/research/faculty/thubbard/
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