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

Exhibit 30
Holyrood – estimated construction costs from 2000 to 2004
£100 milllion
4
3
2
1
0
September 2000
December 2000
Source: Audit Scotland
Exhibit 31
Design development of the foyer roof and glazing package
Source: Audit Scotland
March 2001
June 2001
September 2001
December 2001
March 2002
June 2002
September 2002
December 2002
Part 4. The reasons for increased costs 55
March 2003
June 2003
September 2003
December 2003
March 2004
Total costs
Total project costs reported
to Finance Committee
Construction costs (shaded)
Construction risk
Increased construction
costs over cost plan
Construction inflation
Construction cost plan
Late in 1999 the foyer area was introduced as a comparatively late addition to the concept design of the
Parliament. It would provide necessary additional space for the client and remove the need for circulation between
the MSP block and the assembly buildings complex to go through Queensberry House as previously planned.
The Stage D cost plan in November 2000 included £1.5 million for this part of the building. There was very little
design information. The cost plan allowed a lump sum of £0.7 million (with no quantities or rates) plus £0.8 million
for the glazed roof costed at £500/m 2 .
The work was procured using the two-stage process. At the first tender stage in June 2001 a price of some
£2 million was obtained and accepted. As the requirements were clarified and design developed between the
contractor and the architect, estimated costs increased to £4.2 million, £4.9 million and then in December 2001
£6.2 million. This included £1.2 million for oak and steel finishes alone, almost the whole value of the original cost
plan allowance.
In December 2001 the Progress Group concluded there was little scope to save costs as any redesign would
significantly delay the overall programme and increase costs elsewhere. It accepted the developing design
reluctantly and allowed development to continue.
Exhibit 21 illustrates how the design of the area developed between 2000 and as it has now been constructed.
The current estimated cost of the contract is some £7.4 million excluding risk. The extra costs appear to be the
result of the inability of the contractor to price the contract fully at tender with the limited design information
available; the degree of design development on the package post tender; and extensions of time for delays due to
other packages not completing on time and cranage access.