A report by construction cost consultant Currie & Brown says that inflation, recession and supply chain uncertainty are jeopardising the viability infrastructure projects.
Currie & Brown’s 2023 Infrastructure Cost Predictions Report puts the total cost of Britain’s National Infrastructure Pipeline (NIP) at £483bn by 2026, of which £84bn is the direct result of inflation.
It argues that early planning and effective cost management will be needed to ensure projects are not scaled down or scrapped altogether, thus wasting the money already spent.
Its recommendations include earlier procurement to take advantage of longer lead times and a two-stage procurement process for larger projects to allow for more flexibility.
Nick Gray, Currie & Brown chief operating officer for UK & Europe, said: “Britain has entered recession and inflation remains a significant threat to the financial health of the country. The chancellor has prioritised infrastructure as a key lever for driving labour market participation, growth and productivity, and for accelerating the levelling up agenda.
“However, with budgets so tight and such pressure in the wider economic landscape, we must urgently change the way we approach infrastructure investment if projects are to be successfully delivered. A business as usual approach is simply not feasible. We are calling on the government, local authorities and stakeholders to take immediate action. Early and informed decision making will be critical to safeguarding the infrastructure pipeline, and Britain’s economic recovery.”
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