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Savings on pilot schemes hailed

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A STUDY by research body Tavistock Institute into the two pilot projects for prime contracting has revealed 'impressive' savings on whole-life costs.

Asports and leisure centre Amec is building for the army at Aldershot, Hampshire, is 14.3 per cent below the original figure of £16.7 million and is now expected to cost £14.3 million.

Asimilar project Laing is involved in for the RAF at Wattisham in Suffolk is now predicted to have whole-life costs of £6.6 million - a 7.4 per cent saving on the original projection of £7.1 million.

The study also revealed that prime contractors must be able to 'manage and integrate a number of different kinds of design inputs' and understand costs better.

It added: 'The basis of the new approach is to shift the balance from cutting prices through attacking margins to agreeing fair margins and reducing underlying costs throughout the supply chain.'