Maude quizzes Trillium on cutting contract costs

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Maude quizzes Trillium on cutting contract costs

8/07/10 6:12 pm By Nick Johnstone

Contractors including Telereal Trillium met Cabinet Office minister Francis Maude today to discuss renegotiating their agreements with the government.

The Cabinet Office wants to revise its key contracts with the private sector in an unprecedented bid to save money on public sector deals.

Capita, Serco, and Telereal Trillium were among the 19 companies that met with Maude earlier today as part of an initiative launched by the government’s new Efficiency and Reform Group, which oversees the work of the central Property Unit.

Trillium’s largest government property contract is with the Department for Work and Pensions, covering 24.8m sq ft and running until 2018. However, it also has outsourced property management contracts from the Driver and Vehicle Licensing Agency and Royal Mail.

Maude said: “Today’s meeting demonstrates the importance and urgency the Government is attaching to the efforts to reduce the deficit. Given the really difficult economic climate we now face, we have to do everything we can to deliver better value for money for taxpayers and that involves taking some tough decisions.

“I am laying down the challenge to major Government suppliers to ask them what they can do to take costs out of contracts. Some of this will come out of margins, but we will also invite ideas on how we can structure things differently to reduce complexity and cost. We will look to put into effect immediate savings and also create plans to further reduce costs in the medium to long term.”

The full list of companies to meet Maude is as follows: