Collaboration saves cash: The IESE report 2009/10
£39.1 million now saved by public authorities using IESE construction and asset management
The average construction project procured through IESE Construction and Asset Management is now completed within 1.25% of the expected budget and within 0.6% of the expected time – far exceeding the performance of comparative projects tendered in the traditional way. What’s more, IESE Construction and Asset Management has exceeded its efficiency targets for 2008/09, bringing clients’ total combined savings to £39.1 million.
Details:
Cashable Efficiency Savings
As well as being more reliable and better quality, IESE projects are much more cost effective. ‘Project efficiency’ savings come from the aggregation of costs over many projects. Also, avoiding the OJEU procurement process for each project brings ‘project process’ savings which average £75,000 per project.
The total cost savings public authorities have achieved so far using IESE, including both project efficiency and project process savings, come to £39.1 million.
In addition, the OGC have reviewed the outcome of projects procured through a number of the IEPs and have compared them against the public sector benchmark data. A 9% saving (£55m on £637m of work) was identified for IEP projects analysed in 2009-2010.
According to the OGC, the average IEP framework project generated a 9% saving, on the total value of work, when compared against the public sector benchmark.
