"In aggressively competitive markets, the lowest tender price may not deliver the lowest out-turn cost
, so it's important to take a balanced approach to assessment."
"As we know from experience a lower bid price from an Asian yard does not necessarily translate into a lower out-turn cost
"Government will be looking for most effective out-turn cost
, and I'd concur wholeheartedly that the best value is about delivering the right project with the right solution, including all the environmental criteria, but at the optimum cost."
For example, the out-turn cost
of three first school, new-build extensions came out at on average 21pc below Department for Education and Skills cost yardsticks.
He says: "Added benefits can be certainty of out-turn cost
, more accurate programming and shorter lead-in periods.
In the UK RLB predicts construction out-turn costs
to fall on average by about four per cent in 2009 and by about a further 0.5 per cent in 2010.
All this results in the self-satisfied prophecies by commentators who imagine they are being wise in predicting that out-turn costs
will be much higher than the original prediction.