Source · Select Committees · Public Accounts Committee
Recommendation 19
19
Accepted
Intrusive surveys reveal ongoing issues, making accurate programme cost forecasting impossible.
Conclusion
The Delivery Authority continues to undertake intrusive surveys to understand as much as possible prior about the Palace before carrying out works. It has compiled over 1,750 technical reports on different aspects of the building. We were told that these will not finish prior to work commencing and that issues will continue to be discovered during the 37 Committee of Public Accounts, Nineteenth Report of Session 2019–21, Restoration and renewal of the Palace of Westminster, HC 549, 2 October 2020 38 Committee of Public Accounts, Tenth Report of Session 2022–23, Restoration and renewal of the Palace of Westminster, HC 49, 29 June 2022 39 Q 120 40 Q 120 41 Committee of Public Accounts, Nineteenth Report of Session 2019–21, Restoration and renewal of the Palace of Westminster, HC 549, 2 October 2020 42 C&AG’s report, Palace of Westminster Restoration and Renewal Programme, HC 315, Session 2019–2021 24 April 2020 43 Q 110 14 Restoration & Renewal of the Palace of Westminster – 2023 Recall building phase.44 Any cost estimates will therefore include significant uncertainty with true costs impossible to forecast accurately due to, for example, asbestos or unexpected archaeological finds.45 In 2020, the National Audit Office reported how in refurbishing the Elizabeth Tower, the House Administrations then estimated the final cost would be £80 million, compared to the £29 million forecast in the business case that was approved in 2016; a rise of 176%. Reasons for the cost increase included subsequent surveys identifying that more work needed to be done, and the Tower’s full condition not being identifiable until work started.46 In February 2022, the Clerks told us the forecast final cost is now about £86 million, with £83 million spent to date.47
Government Response Summary
Acknowledging the uncertainties in cost estimates, the R&R Client team commits to presenting cost and time ranges in the strategic case and costed proposal, with the first due for consideration in Autumn 2023.
Government Response
Accepted
HM Government
Accepted
The Clerk of the House, Clerk of the Parliaments, Client Team and the Delivery Authority agree with the Committee’s recommendation. First bullet – present cost and time estimates in ranges The R&R Client team will be presenting cost and time ranges in the strategic case and the costed proposal that will be presented to the Houses, the first of which is due to be considered by the Programme Board and Client Board in Autumn 2023.