- 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:
The flow chart from the 2014 Cabinet Office publication, Cost Led Procurement Guidance outlines the process.
 Trial projects
 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
The Chartered Quality Institute explain the pathway to success for organisations implementing management systems.
An introductory article looking at where a duty of care can arise in the construction industry.
House of Lords committee encourages the use of off-site manufacturing in new report.
Computational fluid dynamics (CFD) can go some way to show the impact of new buildings on their surroundings.
The shortlist for the 2018 prize for the UK's best new building is revealed.
Amendment to Bill aims to provide councils with greater powers to increase tax premiums on empty homes.
As the latest summer blockbuster 'Skyscraper' is released, we look at some of the best uses of buildings in film.
Read our introductory article on how to layout a building.
New cross-party report calls for combustible cladding ban to be extended to all high-rise residential buildings.
Dr Nicholas Falk, director of the URBED Trust, explains why metro cities are the future of urbanisation.