Government Construction cost benchmarks and cost reduction trajectories

We previously published construction cost benchmarks and cost reduction trajectories on behalf of the Department of Health, Environment Agency, Highways Agency, Ministry of Justice and  Partnership for Schools. This latest publication now includes MoD and Department for Communities and Local Government (Homes and Communities Agency).

The information published represents what departments are currently paying for construction which, when combined with the corresponding cost reduction trajectory, offers the opportunity to set increasingly challenging cost envelopes for future projects. Taken together, the cost benchmarks and cost reduction trajectories indicate a downwards cost glidepath.

The first release of data is from the biggest spending departments represented on the Government Construction Board:

  • Department of Health - P21 Framework
  • DEFRA - Environment Agency
  • Department for Transport - Highways Agency
  • Ministry of Justice
  • Department for Education - Partnership for Schools

The latest release includes data for the remaining departments with the largest construction related expenditure. This includes Department for Communities and Local Government (Homes and Communities Agency), Ministry of Defence and Network Rail.

The Cabinet Office is responsible for collating the data but it is owned by departments. The data will be added to and updated on an annual basis, including reporting progress against the cost reduction trajectories.

This data provides a helpful point of reference for the wider public sector – for example Health Trusts and Local Authorities – in determining standard costs for their projects.

The Government Construction team welcomes feedback from Industry on the benefits of this data and any recommendations on how this could be improved. Please send your comments to governmentconstructionteam@cabinet-office.gsi.gov.uk for us to consider.

Government Construction cost benchmarks - February 2012