The call for increased honesty in construction project bids was highlighted by a government official, pressing the need for realistic project timelines and budgets.
- Saurabh Bhandari, from the Office of Government Property, addressed concerns over the credibility of some bids at a recent conference in Birmingham.
- He emphasized the impact of exaggerated proposals on project feasibility and industry confidence, urging a shift towards more honest assessments.
- The government’s development strategy aims to merge different types of projects to maximise value and close funding gaps.
- With over £1.5 trillion required for infrastructure, innovative financial strategies are crucial to sustaining development.
In a decisive address at the Construction Week conference in Birmingham, Saurabh Bhandari, director for property delivery and transformation at the Office of Government Property, called for greater honesty from construction firms in their project bids. Bhandari noted that many bids received appear “unbelievable,” resulting in significant uncertainty and a diminished confidence in the industry’s capabilities. He stressed the need for contractors, consultants, and appraisers alike to present realistic projections of project costs and timelines, advocating for transparency as a cornerstone of trust and dependability in the construction sector.
Bhandari elaborated on the consequences of dubious bidding practices, highlighting that projects often fail to materialise due to the flimsy foundations upon which they are proposed. Addressing the flaws in procurement strategies, he suggested that more open communication about project requirements is necessary to cultivate reliable business cases. He remarked that disingenuous proposals lead to stalled or failed projects, undermining the industry’s overall integrity.
In a discussion with Emily King from LDNY Consulting, Bhandari proposed that the government integrate various development projects, such as schools and community centres, to reduce costs and enhance value. He mentioned the NHS’s approach to neighbourhood healthcare as an example of sectoral consolidation, encouraging a shift in perspective to consolidate assets. This strategic integration is deemed essential for closing the funding gap and optimising government estate development.
The Office of Government Property, part of the Cabinet Office, manages a vast estate of non-infrastructure properties spanning 160 million square metres. Bhandari highlighted the government’s extensive development needs, requiring over £1.5 trillion in funding, with only £775 billion secured for the next decade. This shortfall necessitates innovative investment strategies to attract capital and ensure the continued progress of public and private sector projects. He stated, “That doesn’t mean we stop doing stuff. That means we need to find more innovative ways of actually generating that cash.”
Bhandari’s appeal for greater transparency and strategic integration in construction projects aims to solidify industry credibility and optimise resource utilisation.
