Management of the Holyrood building project (PDF ... - Audit Scotland

18
Exhibit 6
Holyrood project – analysis of current forecast costs
£42m
£28m
£68m
£18m £6m
£10m
£20m
Source: Report to Finance Committee May 2004
2.14 While it is likely that the
buildings will be in a state capable of
being partially occupied the risk is
that by the current target for
completion of August 2004
significant areas may be incomplete
in other ways. Consequently the
construction manager and the trade
contractors may have to spend
several months or even longer in the
building continuing after handover to
the client to complete unfinished
works and snagging.
2.15 The Corporate Body is
implementing a migration strategy for
users based on the assumption that
there is enough time to complete
construction to allow occupation and
use of the building in the late
summer 2004. The Chief Executive
established a dedicated
implementation team of staff to
promote effective planning and
delivery of the move to the new
building. There is close coordination
between the Holyrood project team
and the consultants with the new
implementation team.
£241m
Item Cost
Construction £241m
Fees and site organisation £68m
Irrecoverable VAT on construction £42m
Reserve (including VAT) £28m
Fit out £20m
Programe contingency £10m
Landscaping £18m
Site, demolition and archaeology £6m
Grand total £431 million
In summer 2000, compared to
earlier difficulties, there seemed a
firm basis for the Holyrood project
to move forward
2.16 In September 2000 I reported
the significant challenges that had
previously affected the project:
• Concerns in 1998 and 1999 about
the overall size and consequently
the cost of the initial designs.
• Uncertainty about cost estimates
throughout 1998, 1999 and early
2000, with predicted costs which
consistently exceeded the
approved budget.
• Major changes in the
requirements for the area and
layout of parts of the building,
with the client unable to freeze its
requirements and consequently
the design until June 2000.
2.17 At the time of my September
2000 report on the management of
the project, construction was at a
comparatively early stage.
Construction of the MSP building
frame had commenced but the main
assembly building structure to the
east of the site was not ‘out of the
ground’.
2.18 In September 2000, however,
while much remained to be done to
ensure completion, there seemed a
firmer basis for the project to move
forward:
• In June 2000 the Corporate Body
as client had approved the final
scheme design proposals from
the design team (known as the
‘Stage D’ report).
• The Corporate Body had selected
the members of the new
Holyrood Progress Group, with a
remit to work with the progress
of the project, and the Group had
started its business.
• The Corporate Body approved the
Stage D design on the basis of
confirmation from all the main
parties that the building could be
completed by the end of 2002
within a target construction cost
of £108 million (£119 million
including construction
contingency). This figure was