UK report identifies causes of high infrastructure costsThe cause of high infrastructure costs in the UK may be due in part to a fragmented and inefficient supply chain.

According to the UK government, infrastructure costs in the UK are higher than most other industrialized nations and are among the highest in Europe. Now, in an update on the Infrastructure UK cost review released by the Treasury this week, government officials have identified seven reasons why the UK may be experiencing such high prices, Construction News reports.

For one thing, the UK's private sector construction industry is not structured to optimize efficiencies and maximize benefits through its current supply chain practices. This poorly-designed supply chain is responsible for at least a portion of the disproportionately high infrastructure costs in the UK.

Other issues contributing to the problem include stop-start investment, the time and planning spent on standards and regulation compliance, poor commissioning and ineffective cost management.

"The interim findings of the cost of civil engineering survey appear to be very encouraging, endorsing a number of long standing targets for change," said Rosemary Beales, national director of the Civil Engineering Contractors Association. Working to apply the changes suggested by the report "to the roads program and other areas of publically funded infrastructure should be a central proposal in the final report which we hope will be carried through into real reform," she continued.
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