- Project plans
- Project activities
- Legislation and standards
- Industry context
Last edited 07 Aug 2017
Cost led procurement
The main aims of the Government Construction Strategy were to ‘change the relationship between Clients and Industry’ and achieve a 15-20% reduction in public sector construction costs by 2015. The Government Construction Task Group report 2012 developed three potential new strategies to help achieve these aims:
All three involve early contractor involvement, transparency and integration. Along with a reduction in costs, they are expected to contribute to a reduction in project risk, improved programme accuracy and an enhanced working relationship between client and the supply chain.
The Cost Led Procurement method is ‘...intended to allow industry to use its experience and knowledge to develop innovative solutions through leveraging design, materials, subcontracting, direct labour and experience to the advantage of the Public Sector Client...focused on achieving target costs whilst maintaining, if not improving value’ (Cabinet Office, 2014).
In Cost Led Procurement, the project details are clearly identified and a ceiling cost calculated. Typically, an integrated supply team (one or more) is identified through a framework agreement and the team work together to complete the project at below the ceiling cost. In subsequent similar projects within a framework, Cost Led Procurement offers the opportunity for further reduction of costs.
The CLP plan involves five phases:
 Find out more
 Related articles on Designing Buildings Wiki
- Framework agreement.
- Government construction strategy.
- Integrated project insurance.
- Integrated supply team.
- Managing the procurement process.
- Optimised contractor involvement.
- Procurement route.
- Supply chain.
- Supply chain management.
- Sustainable procurement.
- The benefits of e-procurement in construction.
- Two stage open book.
- Value for money.
 External references
Featured articles and news
Proactive measures to secure property during extreme times.
Safety guidance from BSI released; comments requested.
Scour can make river currents structurally damaging.
Indoor environmental quality looks at air quality and other wellbeing factors.
A procurement method associated with Public Private Partnerships.
Infrastructure can use digital technology to encourage human growth.
Robotics and the construction industry.
ECA comments on CLC's three-phase recovery plan.
Their diplomatic and architectural history.
The origins of the six volume series.
Built to defend British waters, only to serve as pirate radio stations later.
Wellbeing to influence mix of home and office based working.
An introduction to cobotics.
Survey reports on outlook for the engineering sector.
A simple path to possible error avoidance.
Construction + technology = ConTech.