Time and cost still overrun

The new KPIs for 2005 show that on cost predictability, construction cost and construction time, standards have either remained flat or declined. The results showed that, of the projects investigated by the body, two out of three measures on cost – for construction and project cost – were down 1% and 2% respectively to 48% compared with 2004. The figures relate to the proportion of schemes that hit predictability targets on cost.

The news overshadows advances made by the industry on client satisfaction, time predictability, profitability, productivity, defects and safety, which are also contained in the new report.

The figures specifically for construction consultants also made for mixed reading (see box). While overall client satisfaction was up 3% and margins grew from 10.5% to 11.4% in 2005, there were falls in all the client satisfaction sections. The number of training days offered to consultancy staff also fell, from 3.2 days a year in 2004 to two this year.

In the housing sector, construction cost and project cost predictability fell, although design cost predictability went up.

The success of the KPIs gives the UK a clear competitive advantage

Alun Michael

Time predictability in the sector also worsened, with construction time, project time and design time predictability all falling over the past year.

The Constructing Excellence statistics showed that companies that are part of its demonstration programme have dramatically outperformed the industry in measures ranging from productivity and employment issues to cost control and safety. Productivity – the median value added per employee – was found to be 63% better for the demonstration projects, compared with the general industry.

New construction minister Alun Michael praised the results despite the patchy record on improvement. He said: “The success of the KPIs in measuring industry improvement is leading the construction sector internationally and gives the UK a clear competitive advantage.”