Source · Select Committees · Public Accounts Committee
Recommendation 22
22
Accepted
FCDO lacks crucial data on capital project delivery track record and performance.
Conclusion
FCDO completed or started work on 200 capital projects between April 2018 and November 2024, with a total value of £850 million. FCDO does not hold data on its track record in delivering its projects, but several high-profile projects have run significantly over time and budget.58 • FCDO’s Washington Embassy programme completed 12 months behind schedule and its cost increased from £112 million to £160 million (inclusive of contingency costs).59 FCDO told us the main issues were starting the project during COVID-19 and the 90-year-old residence being in poorer underlying condition and requiring more rectification than expected.60 • FCDO’s new High Commission building in Ottawa completed 18 months behind schedule and around £10 million over budget.61 FCDO told us that, as with Washington, the project was affected by COVID-19 and with hindsight it was a mistake to start both projects during a pandemic. Another issue was industrial action in the Canadian construction industry.62
Government Response Summary
FCDO will restart centrally collecting and analyzing lessons learned from its estate capital projects. Target implementation date: March 2026
Government Response
Accepted
HM Government
Accepted
5. PAC conclusion: Some FCDO high-profile estate projects have run significantly over time and budget. 5. PAC recommendation: FCDO should immediately restart centrally collecting and analyzing lessons learned from its estate capital projects, to ensure it has appropriate oversight of project risks and can manage delivery effectively. FCDO should update the Committee in its Treasury Minute response on its progress, including the impact of its new design authority and gateway review processes. 5.1 The government agrees with the Committee’s recommendation. Target implementation date: March 2026