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MoD costs saved
00:00 02 Dec 1998
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by Kathy Watson
Pilot schemes undertaken by Laing and Amec to design and build two training camps for the Ministry of Defence have borne fruit with both contractors being able to show that, if construction went ahead, there should be cost savings of 10 per cent below the MoD's baseline figures.
The cost reductions - which are measured over the whole life of the facilities - have delighted the client and virtually assured both contractors of winning one of the MoD's £200 million prime contracts next year.
The Defence Estates Organisation (DEO), which is partnering with the contractors under the Building Down Barriers initiative, is now recommending the go-ahead to the Army Land Command (ALC), the ultimate client. A decision is due by Christmas.
Although the costs savings are yet to be confirmed, Clive Cain, director of technical standards at the DEO is optimistic that they will get the green light. "I am well pleased with the savings already showing on both projects, for both capital and operational costs. We have also identified further savings at the design and construct stage so we hope to come in below final account figures."
But he stressed that the ALC would make the final decision.
The contractors were appointed in summer 1997 to design, build and maintain the two physical and recreation training centres at Wattisham (Laing) and Aldershot (Amec), worth £3.5 million and £5.5 million respectively. The initiative included a sharing arrangement for costs saved on the projects.
The design and build phase is understood to have a cost saving target of 30 per cent though this may be reviewed as the project moves to the construction phase.
Both Amec and Laing have admitted they faced enormous cultural problems in partnering on this project. Geoffrey Wort, director of external services for John Laing, said it had proved a very painful learning curve. Wort added: "We are very hopeful that we will be awarded the next phase of the contract."
Malcolm Eckersall, group executive director of Amec, admitted three quarters of his initial team of 24 had to be dropped because they could not change their mindset.
Next April the DEO, the construction industry's biggest client, will begin to switch all its contracts to a partnering basis. In preparation a new form of contract is now being written because officials feel current forms are 'too adversarial.'
Pilot schemes undertaken by Laing and Amec to design and build two training camps for the Ministry of Defence have borne fruit with both contractors being able to show that, if construction went ahead, there should be cost savings of 10 per cent below the MoD's baseline figures.
The cost reductions - which are measured over the whole life of the facilities - have delighted the client and virtually assured both contractors of winning one of the MoD's £200 million prime contracts next year.
The Defence Estates Organisation (DEO), which is partnering with the contractors under the Building Down Barriers initiative, is now recommending the go-ahead to the Army Land Command (ALC), the ultimate client. A decision is due by Christmas.
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Although the costs savings are yet to be confirmed, Clive Cain, director of technical standards at the DEO is optimistic that they will get the green light. "I am well pleased with the savings already showing on both projects, for both capital and operational costs. We have also identified further savings at the design and construct stage so we hope to come in below final account figures."
But he stressed that the ALC would make the final decision.
The contractors were appointed in summer 1997 to design, build and maintain the two physical and recreation training centres at Wattisham (Laing) and Aldershot (Amec), worth £3.5 million and £5.5 million respectively. The initiative included a sharing arrangement for costs saved on the projects.
The design and build phase is understood to have a cost saving target of 30 per cent though this may be reviewed as the project moves to the construction phase.
Both Amec and Laing have admitted they faced enormous cultural problems in partnering on this project. Geoffrey Wort, director of external services for John Laing, said it had proved a very painful learning curve. Wort added: "We are very hopeful that we will be awarded the next phase of the contract."
Malcolm Eckersall, group executive director of Amec, admitted three quarters of his initial team of 24 had to be dropped because they could not change their mindset.
Next April the DEO, the construction industry's biggest client, will begin to switch all its contracts to a partnering basis. In preparation a new form of contract is now being written because officials feel current forms are 'too adversarial.'
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