Improving the Delivery of Infrastructure

The latest report from the National Infrastructure Commission (NIC), Cost Drivers of Major Infrastructure Projects in the UK, has identified ‘four interrelated factors’ that prevent the consistent delivery of major infrastructure projects on time and budget:

• Lack of clear strategic direction, including a failure to commit to long?term funding and set out a long?term pipeline of projects
• Client and sponsorship challenges, with clients lacking clarity about their role in relation to that of the sponsoring department and the Treasury and not possessing the skills to manage procurement
• Inefficient consenting and compliance, which causes delays that add cost without improving outcomes
• Constrained supply chain, with a long?term productivity challenge, that is not investing in its capacity for the future.

Acknowledging that “successive Governments have not provided a clear strategic direction and a stable policy environment which can promote industry confidence to invest in its supply chain”, the report sets out actions to improve the budgeting, specification, design and delivery of infrastructure projects, which could reduce outturn costs across a portfolio of enhancement projects by 10% to 25%.

The Government has also announced a new National Infrastructure and Service Transformation Authority (NISTA) to ‘get a grip’ on delays to infrastructure delivery. The new body, which will be operational by spring 2025, will combine the functions of the NIC and the Infrastructure and Projects Authority within one organisation and oversee the Government’s 10?year infrastructure strategy in conjunction with industry, while driving more effective delivery across the country.