Slashing infrastructure investment risk, global Coalition transform construction cost system
Bangalore, 24 July, 2017: – A universal system that enables global comparison of construction project costs launches today.
Financingdesperately-needed buildings and infrastructure including energy systems,railways, bridges, schools and hospitals can often be risky becauseinfrastructure projects across the globe categorise and forecast theconstruction costs differently.
Until now,it has been almost impossible for governments and investors to compareconstruction costs like with like. It is hard for them to know ifpublicinfrastructure projects are good value and this can waste taxpayermoney.
Tacklingthese problems head on, a group of influential sector players got together andformed the International Construction Measurement Standards (ICMS) Coalitionduring a meeting at the International Monetary Fund in June 2015.
Constructionis a large contributor to national economies and to keep citiesfunctioning, governments worldwide need to spend vast sums of public moneyon essential infrastructure. Inconsistent information causes poor costprediction which impedes investment and can cause 9 out of 10 megaprojects to run over budget.*
Overall, close to $78 trillion needs to be spentglobally between 2014 and 2025** on infrastructure and the ICMS Coalition sawthe need to de-risk these projects for public and private sector investors. TheWorld Economic Forum has also called for professional collaboration tostandardize cost definitions and classification.***
The new ICMS standard enables, for the first time,better comparisonin order to improve investor confidence and attract more private sectorfunding. Arup, Arcadis, Gardiner and Theobold, Faithful+Gould, Turner& Townsend and Gleeds are among leading organisations who publicallyannounce their support for ICMS by registering as ICMS “Partners” committing toits future use.