International standards will boost infrastructure investment: RICS

RICS has called for the introduction of global standards to be applied to infrastructure works in the UK.

The leading professional infrastructure body says that the UK can only benefit from the adoption of international standards, particularly in light of Brexit, and if the UK is to attract more private infrastructure investment.

According to RICS, public sector spending is likely to fall and we need to encourage more private sector spending.

Key highlights of the report include:

• Public investment in infrastructure is expected to fall.
• International standards will provide certainty and assurance amid ongoing Brexit talks.
• Government ‘must be proactive’ in attracting investors to deliver infrastructure.

Launched at the Labour Party Conference this week, the paper titled “Attracting Infrastructure Investment Through International Standards”, sets out the case for using International Construction Measurement Standards (ICMS) to attract private investment in infrastructure projects.

RICS state that with the UK’s ageing infrastructure, and public sector investment falling from 3.2% in 2010 to 1.4% of GDP in 2020, the private sector has a crucial role to play in delivering upgraded infrastructure, and bringing in international standards will encourage this investment.

ICMS is a key tool in managing investments, providing certainty to industry and attracting investment.

In the paper, RICS also calls for the government to proactively support infrastructure, by identifying projects and providing guarantees to investors of minimised risk during the construction process, including seeking cross-party support for projects.

Alan Muse, RICS Global Director, Built Environment, said: “This paper clearly shows the benefits of adopting international standards and lays out constructive steps that can be taken to secure investment and ensure the UK remains an attractive option as Brexit negotiations continue.

“Coming in the wake of the Institute for Government’s report last week which argued that, with infrastructure investment set to hit £250bn in the next five years, the government ‘cannot afford expensive mistakes and costly delays’, there is a clear need for global standards which will help manage costs while delivering clarity and certainty.

“RICS is ready to work with government, lenders and industry to develop and deliver these new international standards, which will ultimately unlock the private finance needed to help infrastructure thrive.

Mo Rahee, RICS Infrastructure Policy Manager said: “Like the International Financial Reporting Standard, the International Construction Measurement Standard provides a level of certainty – through transparency –  to investors.  Effective and accurate reporting of capital expenditure can only benefit the construction sector by providing investors with accurate information that inform their investment decision process.

“Government can also support the sector by identifying projects that will generate long-term revenues and have cross-party support. This will be vital to ensure infrastructure is updated and new projects are delivered.”

Download the full paper here.

 

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