{"id":57194,"date":"2019-05-17T16:19:39","date_gmt":"2019-05-17T15:19:39","guid":{"rendered":"https:\/\/www.pbctoday.co.uk\/news\/?p=57194"},"modified":"2019-05-20T07:37:32","modified_gmt":"2019-05-20T06:37:32","slug":"major-infrastructure-projects","status":"publish","type":"post","link":"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/major-infrastructure-projects\/57194\/","title":{"rendered":"ICE report: More focus on benefits of major infrastructure projects"},"content":{"rendered":"<h2 class=\"p1\"><span class=\"s1\">More focus should be placed on the benefits of major infrastructure projects and less on cost, a report by the Institution of Civil Engineers has said<\/span><\/h2>\n<p class=\"p1\"><span class=\"s1\">The report looks at how the <a href=\"https:\/\/www.pbctoday.co.uk\/news\/bim-news\/innovating-the-built-environment-with-digital-twins\/56875\/\">built environment sector<\/a> can reduce the gap between cost estimates and outturns for major infrastructure projects.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">ICE\u2019s investigation into infrastructure forecasting shows, globally, that it\u2019s incredibly difficult to forecast time and cost for major projects due to there being many unforeseen issues that can arise during delivery.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">Despite these uncertainties, the ultimate measure of success continues to be initial cost forecasts. The Institution recommended that the success measures for projects should shift from an over-focus on costs towards whole-life benefit. The survey data illustrates support from the general public for such a move.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">Miles Ashley, chair of the report\u2019s steering group, said: \u201cInfrastructure is a vital part of\u202fsociety,\u202fwith major assets\u202fhelping to stimulate economic growth, improve health and well-being of the population and protect communities from the effects of extreme weather and <a href=\"https:\/\/www.pbctoday.co.uk\/news\/energy-news\/ccc-homes-climate-change\/52870\/\">climate change<\/a>.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">\u201cWe cannot continue to dismiss from the conversation these\u202fimportant\u202fbenefits. Industry and government need to work smarter,\u202ffind ways to reduce the disparity between forecasts and outturns, but also to change the narrative and ensure\u202fthe wider public, the end users, are also aware of the whole-life benefits these incredible infrastructure projects are bringing to them.\u201d\u202f<\/span><\/p>\n<h3 class=\"p1\"><span class=\"s1\">Public support<\/span><\/h3>\n<p class=\"p1\"><span class=\"s1\">There is public support for the recommendations, with nearly three quarters (74%) of adults agreeing that politicians should\u202ftalk to the public\u202fmore\u202fabout\u202fthe benefits\u202fmajor infrastructure\u202fprojects bring, rather than\u202fthe\u202fcosts.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">The survey, conducted by <a href=\"https:\/\/yougov.co.uk\/\">YouGov<\/a>, also found that only 3% of adults feel that\u202fa\u202flow\u202foverall\u202fcost\u202fof construction\u202fshould be the\u202fmost important\u202fmeasure of success of major infrastructure projects.<\/span><\/p>\n<h4 class=\"p1\"><span class=\"s1\">ICE asked adults across Great Britain what they considered most important in deciding the success of major infrastructure projects:<\/span><\/h4>\n<ul>\n<li class=\"p1\"><span class=\"s1\">3% said for overall cost of construction to be low;<\/span><\/li>\n<li class=\"p1\"><span class=\"s1\">17% said for the project to strengthen economic growth in the long-term;<\/span><\/li>\n<li class=\"p1\"><span class=\"s1\">27% said for the infrastructure to be reliable and cost-effective in the long-term;<\/span><\/li>\n<li class=\"p1\"><span class=\"s1\">30% said for the project to regenerate communities<\/span><\/li>\n<\/ul>\n<figure id=\"attachment_57195\" aria-describedby=\"caption-attachment-57195\" style=\"width: 591px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-57195\" src=\"https:\/\/www.pbctoday.co.uk\/news\/wp-content\/uploads\/2019\/05\/fvo-graph-one-300x230.png\" alt=\"major infrastructure\" width=\"591\" height=\"453\" srcset=\"https:\/\/www.pbctoday.co.uk\/news\/wp-content\/uploads\/2019\/05\/fvo-graph-one-300x230.png 300w, https:\/\/www.pbctoday.co.uk\/news\/wp-content\/uploads\/2019\/05\/fvo-graph-one-768x589.png 768w, https:\/\/www.pbctoday.co.uk\/news\/wp-content\/uploads\/2019\/05\/fvo-graph-one-80x60.png 80w, https:\/\/www.pbctoday.co.uk\/news\/wp-content\/uploads\/2019\/05\/fvo-graph-one-696x534.png 696w, https:\/\/www.pbctoday.co.uk\/news\/wp-content\/uploads\/2019\/05\/fvo-graph-one-547x420.png 547w, https:\/\/www.pbctoday.co.uk\/news\/wp-content\/uploads\/2019\/05\/fvo-graph-one.png 800w\" sizes=\"auto, (max-width: 591px) 100vw, 591px\" \/><figcaption id=\"caption-attachment-57195\" class=\"wp-caption-text\">fvo graph one<\/figcaption><\/figure>\n<p class=\"p1\"><span class=\"s1\">Adults were also asked to what extent they agreed that politicians should talk more to the public about the benefits of major infrastructure projects.<\/span><\/p>\n<ul>\n<li class=\"p1\"><span class=\"s1\">Agree \u2013 74%<\/span><\/li>\n<li class=\"p1\"><span class=\"s1\">Neither agree nor disagree &#8211; 16%<\/span><\/li>\n<li class=\"p1\"><span class=\"s1\">Disagree \u2013 5%<\/span><\/li>\n<li class=\"p1\"><span class=\"s1\">Don\u2019t know \u2013 5%<\/span><\/li>\n<\/ul>\n<figure id=\"attachment_57196\" aria-describedby=\"caption-attachment-57196\" style=\"width: 475px\" class=\"wp-caption aligncenter\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-57196\" src=\"https:\/\/www.pbctoday.co.uk\/news\/wp-content\/uploads\/2019\/05\/fvo-graph-two-249x300.png\" alt=\"major infrastructure \" width=\"475\" height=\"573\" srcset=\"https:\/\/www.pbctoday.co.uk\/news\/wp-content\/uploads\/2019\/05\/fvo-graph-two-249x300.png 249w, https:\/\/www.pbctoday.co.uk\/news\/wp-content\/uploads\/2019\/05\/fvo-graph-two-696x838.png 696w, https:\/\/www.pbctoday.co.uk\/news\/wp-content\/uploads\/2019\/05\/fvo-graph-two-349x420.png 349w, https:\/\/www.pbctoday.co.uk\/news\/wp-content\/uploads\/2019\/05\/fvo-graph-two.png 704w\" sizes=\"auto, (max-width: 475px) 100vw, 475px\" \/><figcaption id=\"caption-attachment-57196\" class=\"wp-caption-text\">fvo graph two<\/figcaption><\/figure>\n<h3 class=\"p1\"><span class=\"s1\">The recommendations<\/span><\/h3>\n<p class=\"p1\"><span class=\"s1\">The report recognises the impact that relying on early estimates, created before full scope and complexity is known, can have on the final cost versus outturn conversation.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">To minimise the disparity between early and final costs, ICE recommends industry adopt the principles set out in the government\u2019s Outsourcing Playbook. It further discusses the way asset owners can use should-cost estimations to obtain fairer and more accurate tenders.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">The report also suggests how the <a href=\"https:\/\/www.ice.org.uk\/about-ice\/what-we-do\/infrastructure-client-group\">Infrastructure Client Group<\/a>\u2019s Project 13 approach can help the sector move away from transactional arrangements towards an enterprise model.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">Chris Richards, ICE head of Policy and Public Affairs, said: \u201cCost and time overruns on major projects is not an issue unique to the UK, it is a global industry challenge. Our paper outlines some of the ways the infrastructure community and government, can work together to narrow the gap between cost forecasts and outturn to help alleviate the friction this can cause.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">\u201cWe can&#8217;t get away from the fact that major projects by their nature are large, unique and are built over a long time period with many factors that change over that time. The public are alive to that fact, but it is equally important that we continue to highlight the huge benefits these infrastructure projects bring to society.\u201d<\/span><\/p>\n<h3 class=\"p1\"><span class=\"s1\">The report makes four recommendations<\/span><\/h3>\n<p class=\"p1\"><span class=\"s1\">Infrastructure owners should complete scope, design and exploration before commencement of work is allowed, to avoid scope creep or retroactive changes, taking steps to include contractors in design at an early stage.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">The government and infrastructure owners must move away from capital cost as the most important metric when assessing project benefits, recognising the importance of whole-life economic, social and environmental value.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">Principles set out in the Outsourcing Playbook should be mandatory for government infrastructure owners, this includes infrastructure owners undertaking should-cost modelling to help inform their expectations and knowledge of appropriate tender prices during the procurement process.<\/span><\/p>\n<p class=\"p1\"><span class=\"s1\">It should be mandatory for all public infrastructure owners <a href=\"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/citb-procurement-infrastructure\/55750\/\">undertaking procurement<\/a> to award contracts based on a cost estimate range, using a should-cost estimate as a reference point, with an amount of contingency allocated appropriately to the level of project maturity.<\/span><\/p>\n<div class=\"mk-custom-module-container\">\n<\/div>","protected":false},"excerpt":{"rendered":"<p>More focus should be placed on the benefits of major infrastructure projects and less on cost, a report by the Institution of Civil Engineers has said.<\/p>\n","protected":false},"author":20,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[304],"tags":[277,693,676,908,636,276,579,639],"stakeholder_rel_tag":[],"contributor_rel_tag":[],"class_list":{"0":"post-57194","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-planning-construction-news","7":"tag-built-environment","8":"tag-climate-change","9":"tag-construction","10":"tag-economy","11":"tag-engineering","12":"tag-government","13":"tag-infrastructure","14":"tag-procurement"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.9 (Yoast SEO v26.9) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>ICE report: More focus on benefits of major infrastructure projects<\/title>\n<meta name=\"description\" content=\"More focus should be placed on the benefits of major infrastructure projects and less on cost, a report by the Institution of Civil Engineers has said\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/major-infrastructure-projects\/57194\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"ICE report: More focus on benefits of major infrastructure projects\" \/>\n<meta property=\"og:description\" content=\"More focus should be placed on the benefits of major infrastructure projects and less on cost, a report by the Institution of Civil Engineers has said.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.pbctoday.co.uk\/news\/planning-construction-news\/major-infrastructure-projects\/57194\/\" \/>\n<meta property=\"og:site_name\" content=\"Planning, Building &amp; 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