Source · Select Committees · Public Accounts Committee
Recommendation 35
35
New Hospital Programme faces significant commercial risks from construction capacity shortages and high inflation.
Conclusion
The NHP team also has to manage a number of commercial risks to the programme which could impact affordability and deliverability. These include a lack of capacity in the UK construction industry, and the significant investment needed in new factory capacity for modular, offsite construction. High inflation in the construction sector (around 14% a year from May to December 2022) might also result in companies being increasingly unwilling to bear the risk of inflation in contracts.77
Government Response
A response document is linked to this report, dated 8 March 2024. Response attribution to this conclusion has not been verified. Read the response document ↗