Big savings with new procurement method

Construction costs are being cut by up to 30 per cent and contractors are making five per cent margins using a new form of procurement, leading clients claimed this week.

Slough Estates construction general manager Dr Bernard Rimmer and Argent Group md Peter Cookson confirmed that bringing in specialist contractors at the design stage has resulted in major savings on the M&E and groundworks packages.

"M&E consultants are very good at concept design but not as close to the real market of chillers and pumps as M&E contractors. By putting the two together we have saved up to 30 per cent," Rimmer told CJ.

The process of dealing direct with specialist contractors is part of a procurement method which Slough Estates calls Programme Design and Construct (PRODAC).

"We assemble the designers and a contractor on a negotiated basis. We then bring in the specialist contractors and develop the design to the stage where we can negotiate a lump sum design and build contract with the contractor," he said.

"The designers are then novated to the contractor. It's an immensely enjoyable process which is good value for money and which ensures the other parties make a reasonable margin," said Rimmer.