National Infrastructure Commission - Cost Drivers Of Major Infrastructure Projects In The UK

The National Infrastructure Commission's new report analyses the factors that can contribute to increased costs on major infrastructure projects.

With significant new infrastructure needed over coming decades to deliver net zero, support economic growth across the UK and improve our resilience to the impacts of climate change, improved cost management will better enable delivery of the Commission’s recommended programme of investment.

Through new analysis of project data and engagement with key stakeholders, the report identifies actions to improve the budgeting, specification, design and delivery of future UK infrastructure, which if actioned could translate into reductions of between ten and 25 per cent in outturn costs across a portfolio of enhancement projects.

This report identifies four root causes that can contribute to systemic failures of cost management on major infrastructure projects:

• lack of clear strategic direction
• client and sponsorship challenges
• inefficient consenting and compliance
• a constrained supply chain.

The report draws upon a number of existing studies to help understand the factors which impact on the cost of major projects, along with evidence from discussions with organisations responsible for a range of schemes in different infrastructure sectors.

Accompanying the report is a separate technical annex explaining the methodology used in the report, and a summary of a stakeholder roundtable held jointly with BCG.

To learn more, visit the National Infrastructure Commission website and download the full report.