Government clients achieve semi-excellence

Half of the government departments that signed up to the Office of Government Commerce's (OGC) Achieving Excellence construction procurement agenda have met or exceeded its targets. A further quarter have come within 90% of those targets.

An OGC spokesman said: "There has been widespread acceptance of the principles of Achieving Excellence [which called for all departments to use innovative procurement strategies]. These results provide solid foundations for greater change and improvements."

The government is now raising its expectation with the demand that 70% of construction projects must be delivered on time and to budget, be defect-free and exceed stakeholder expectations.

In turn it will push for faster procurement methods. By April 2005, procuring departments will be required to reduce by 25% the time between deciding on a procurement method and the award of the contract for all projects lasting a year. A 15% time reduction is expected on all other projects.

This tough stance forms part of a central government strategy document revealed today (Wednesday) at an OGC conference in London entitled Building on Success, which is the name of the follow up to Achieving Excellence.

Speaking at the event, chief secretary to the Treasury Paul Boateng will tell delegates that although the targets are "challenging", the changes "would maximise the benefits we all want to see".

Delegates at the conference will also hear examples of the success of innovative government procurement. The new Home Office HQ in Marsham Street, being built by the Bouygues-led Annes Gate Property consortium, is expected to achieve 10% better value by using design, build and operate through PFI, embracing team integration, whole life costing and sustainability. Traditional procurement could have added six months to the demolition and construction period.

The use of prime contracting at the Defence Logistics Organisation's Andover North site redevelopment, being undertaken by Citex, is expected to result in 30% savings in the cost of construction and operation.