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Thursday, 14 September 2017 08:57

Arcadis warns UK must double construction output to deliver infrastructure pipeline

Leading global design and consultancy firm Arcadis for is warning that the UK must double its construction output to build at a rate of over £95,000 every single minute for the next decade to even come close to meeting national infrastructure ambitions.

The figures are based on the current iteration of the National Infrastructure and Construction Pipeline (NICP), which features upwards of £500 billion of infrastructure spend over the next 10 years on over 500 infrastructure projects across six main sectors, including water.

In a new report, Opportunity Knocks: Delivering the UK’s Infrastructure Pipeline, Arcadis says that this will mean more than doubling the historic peak rate of delivery and require a major step- change in how construction in the UK is planned and delivered.

Arcadis: Major UK investment programmes 2017-21

Arcadis Major Infra programmes 2017-21For the first time, some of the most complex and technically challenging projects in the world are all happening simultaneously. Greater London alone offers over £28bn of infrastructure opportunity over the next four years, including the Thames Tideway Tunnel.

With more major infrastructure programmes simultaneously underway than ever before, this means that competition is rife for access to the best supply chain, technology and construction talent.

Arcadis also flags up that while the NICP represents the largest potential spend seen so far on infrastructure, it actually understates the real scale of the opportunity.

“The Pipeline represents a huge opportunity, but, incredibly, understates the scale of the potential programme”  and excludes some of the UK’s most important future programmes e.g. Heathrow’s proposed third runway and Highways England’s Lower Thames Crossing.

“We could be looking at the need to deliver UK infrastructure at a scale and pace that is unprecedented.” the report says. 

This will force the industry to do things differently and innovate on a massive scale to achieve the step-change required, including using digital solutions, offsite manufacture and offshore design at scale to increase capacity and productivity. It is also essential that the industry continues to collaborate across sectors and the supply chain to help speed up the pace of delivery.

Arcadis has set out the following six factors as the key to successful infrastructure delivery:

  • Understand the Pipeline
  • Identify what makes a project attractive
  • Align with Industrial Strategy
  • Embrace technical innovation
  • Get the basics right
  • Establish the right commercial model

Involving suppliers early to co-create delivery plans is a key factor

Key factors identified to optimise delivery strategies include bundling projects and programmes together, alongside collaborating with other programmes, and the supply chain. Establishing the right commercial model will also mean getting close to the supply chain and involving suppliers early to co-create delivery plans.

Arcadis says the industry must embrace technical innovation – but also create volume by re-using existing solutions and not reinventing the wheel. It must also incorporate digital solutions at all stages of the programme – from design to operation – and use BIM and digital visualisation to drive certainty.

Greg Bradley, Head of UK Infrastructure Advisory at Arcadis, commented:          

“The need to double construction output on infrastructure is no small task, and it will force us to do things differently. The industry needs to look at innovating on a massive scale to achieve the step-change required, including upscaling digital solutions, offsite manufacture and offshore design, investment in skills and training, sharing of resources and better alignment with regional development agendas. We also need to continue to collaborate across sectors and the supply chain to help speed up the pace of delivery.”

Click here to download Opportunity Knocks: Delivering the UK’s Infrastructure Pipeline