Government unveils new savings plan and an updated infrastructure pipeline

Westminster

The government has committed to saving 拢1.7bn from the cost of public projects, and hiring 20,000 construction apprentices, by 2020.

In a new construction strategy the government also pledged to roll out BIM level 3 and improve client procurement skills over this parliament.

Treasury minister Lord O鈥橬eill also unveiled with over 拢100bn of centrally-funded government projects at a launch event at the Institution of Civil Engineers鈥� headquarters in Whitehall.

The construction strategy builds on Paul Morrell鈥檚 last strategy, which covered 2011-2016 and has been credited with saving the government more than 拢3bn in construction costs and sparking a digital revolution in the sector through its 2016 BIM level 2 mandate.

Morrell鈥檚 strategy targeted a 15-20% reduction in spend on construction projects over the last parliament.

The new strategy includes an absolute savings target of 拢1.7bn - based on today鈥檚 costs - rather than another percentage reduction.

A source close to government said: 鈥淲e saved more than 拢3bn last parliament. But all the low hanging fruit has been taken, it was probably a lot easier for Paul [Morrell] to cut out the fat. Now it鈥檚 really hard work.鈥�

Commenting on the apprentices target, the source added: 鈥淏ecause of the amount of money we鈥檙e spending, central government will be supporting 20,000 apprentices over this parliament.鈥�

The government hopes to achieve further cost savings through better use of BIM and adopting whole-life costing.

The strategy also sets out ambitions for smarter procurement, fairer payment, improving digital skills and reducing carbon emissions.

Chancellor George Osborne鈥檚 Budget last week revealed the government鈥檚 commitment to rolling out BIM level 3. .

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