Source · Select Committees · Public Accounts Committee
Recommendation 29
29
Accepted
The Department said that its Programme Business Case had built in substantial allowance for inflation,...
Recommendation
The Department said that its Programme Business Case had built in substantial allowance for inflation, approximately £360 million over the lifetime of the redevelopment programme. It stated that for the current phase of the programme up to 2024 it was confident it had the money it needed to do the work required and that the construction elements during this phase were relatively small scale.54 With work on developing the main construction contracts not due to start until after 2025, the Department said that it will be its Programme Business Case in 2024 where it will revisit the main projections for inflation. It stated that it will work closely with HM Treasury and the IPA when assessing inflation and deciding the most appropriate pricing strategy to use in its commercial contracts.55
Government Response Summary
The government agrees to continue developing its cost estimate for the Weybridge redevelopment programme, including the use of cost ranges to illustrate the level of uncertainty. Target implementation date is Summer 2024.
Government Response
Accepted
HM Government
Accepted
5. PAC conclusion: There remains substantial uncertainty over the costs of the Weybridge redevelopment programme. 5. PAC recommendation: The Department needs to continue to develop its cost estimate and be clear where, and how much, uncertainty remains. This should include the use of cost ranges to illustrate the level of uncertainty. 5.1 The government agrees with the Committee’s recommendation. Target implementation date: Summer 2024 5.2 The cost estimate will continue to be developed over the current tranche, through to the main investment decision in 2024, including how uncertainty is reflected in those costings. It is the intention of the department to introduce cost ranges.