Stuart Westgate, risk consulting director at KPMG, comments on the government’s announcement to reduce cost in UK infrastructure projects by 2015:
“KPMG welcomes the government’s announced progress in achieving reductions in the cost of delivering the UK’s infrastructure. We know that the UK faces a significant infrastructure deficit and the £200bn to be invested in the next 5 years needs to go further if the UK is to retain its international competitiveness.
“The potential risk is that we now overpromise then under-deliver. There are many examples of capital investment programmes where cost savings are claimed in the planning stage but turn into cost overruns during construction.
“Therefore, the government needs to ensure that cost planning and estimation is robust, and encourage long term reform in the UK’s construction supply chain so there is a shared incentive to reduce cost.”