Project Cost Escalation from Delays
Delays in infrastructure projects driven by short-term cost-saving decisions, resulting in significantly increased overall construction costs.
Strongest theme matches
Mixed across source types and ranked by classifier confidence plus text match strength.
Committee recommendation
100match
#50 - Clear project scope definition essential to prevent cost escalation in infrastructure plans
The Department reflected that a key lesson from the experience of HS2, and which needs to inform all the Department’s future infrastructure plans, is that the Department needs to be very clear when it sets out on a large project what it is there to achieve. Changing the scope significantly when a project is already underway has a...
Matched on
terms: cost, escalation, project
Committee recommendation
95match
#22 - Ensure environmental legislation requirements do not disproportionately increase major public infrastructure project costs.
We challenged the Department on the balance in legislation that needs to be taken between meeting environmental obligations and costs, raising the example of the £100 million cost of a protective ‘bat tunnel’.36 In order to mitigate HS2’s impact on nearby bat habitats, the Sheephouse Wood Bat Protection Structure is being constructed near Calvert in Buckinghamshire. The structure...
Matched on
terms: cost, project
Committee recommendation
94match
#23 - Home Office asylum accommodation plans consistently rated 'red' by Infrastructure and Projects Authority.
The Home Office had initially planned to be using the Northeye site to accommodate asylum seekers by March 2023, but this was delayed due to issues around the remediation costs and challenges getting the site operational. In March 2023, the Home Office changed the site’s status to a ‘long–term strategic site’, expecting that it would take six to...
Matched on
terms: cost, delay, project
Committee recommendation
90match
#33 - Third Report - Delivering the Government’s infrastructure commitments through major projects
The IPA should consider how it can publish data more quickly—and in particular highlight changes to the project, such as increases in costs or delay—so that these issues do not first emerge a year after the fact.. (Paragraph 130) Delivering the Government’s infrastructure commitments through major projects 37
Matched on
terms: cost, delay, project
Committee recommendation
81match
#37 - 1st Report - New Towns: Commit and Build
Connecting these utilities to national networks during construction presents additional challenges. New towns are megaproject-scale endeavours, requiring complex logistical planning, especially for “sequencing” (the scheduling and execution of different stages of the building process.) Sequencing is time-critical, because each milestone in a construction process relies on other stages having been completed. For example, if new utilities are installed...
Matched on
terms: cost, delay, project
Committee recommendation
78match
#24 - Department and HS2 Ltd recognise need for improved balance between environmental compliance and cost.
The Department strongly agreed, however, about how the balance between compliance and cost should be considered when delivering national infrastructure in the future.41 HS2 Ltd also recognised that it was a complex issue and a sensitive area, telling us that the structure needed local planning permission from Buckinghamshire Council which led to at least a four–year delay which...
Matched on
terms: cost, delay
Committee recommendation
77match
#56 - Fourth Report - Defence in Scotland: military shipbuilding
Prior to the announcement of the Batch 2 contract, the Defence Secretary informed the House in a Written Ministerial Statement that there would be a 12-month delay to the Batch 1 frigates becoming operational, from October 2027 to October 2028. The cost of the project would therefore grow by 4.2 per cent, or £233 million.94 The Defence Secretary...
Matched on
terms: cost, delay, project
NAO recommendation
76match
Levelling up funding to local government
Given the delays to projects across the Levelling Up Fund and Towns Fund, DLUHC should set out what further action it is going to take if projects cannot be completed within the existing funding deadlines. This could include resetting expectations for what and when these funds will deliver, to take account of rising cost pressures driven by factors...
Matched on
terms: cost, delay, project
Committee recommendation
74match
#48 - HS2 Euston exemplifies department's failure to learn from past major rail projects
The previous Public Accounts Committee also concluded in its 2023 report on HS2 Euston that it was another example of the Department making the same mistakes and failing to learn lessons from its management of other major rail programmes, highlighting the need for more work on cost estimation, the treatment of contingency and managing the integration of complex...
Matched on
terms: cost, project
Committee recommendation
73match
#5 - 10th Report - Government shared services
The Cabinet Office is failing to manage effectively the interdependencies with other government change programmes. At least 25 other digital change programmes across government must work with the shared services systems. Mismanaged interdependencies have resulted in avoidable costs, delays and pose a weak point for clusters’ delivery of the strategy. The failure of one interdependent programme, the Cabinet...
Matched on
terms: cost, delay
Committee recommendation
73match
#2 - 8th Report - Northern Powerhouse Rail
There is a clear risk that the Department will not be able to manage the programme within its £45 billion funding cap. HM Treasury has set a £45 billion funding cap for the programme. This may help affordability, but we are unclear how HM Treasury determined the cap before the entire 3 project is designed, scoped and costed....
Matched on
terms: cost, project
Committee recommendation
73match
#58 - Fourth Report - Defence in Scotland: military shipbuilding
The award of the contract to build five additional Type 26 frigates to BAE Systems is welcome news for Scottish shipbuilding, and importantly continues the shipbuilding ‘drumbeat’ into the medium-term. We note that, partly as a consequence of global challenges, the first batch of Type 26 vessels has faced delays and increased costs. 90 HC Deb, 15 November...
Matched on
terms: cost, delay
Committee recommendation
69match
#161 - 2nd Report - The impact of environmental regulations on development
The costs of completing surveys can be significant. Developers and promoters must make a substantial financial outlay at the beginning of a project. The Country Land and Business Association warned that “the fear of excessive costs … deters people from applying [for planning permission].” 210 Jan Bessell, Chair of the National Infrastructure Planning Association, said that this project-by-project...
Matched on
terms: cost, project
Committee recommendation
69match
#9 - 8th Report - Northern Powerhouse Rail
However, the Department has a track record of high infrastructure costs and poor cost estimation on its major rail projects. For example, in February 2025 we reported that the £45 billion budget for High Speed Two (HS2) Phase 1 was no longer viable given the cost estimates at the time, which were as high as £66 billion (all...
Matched on
terms: cost, project
Committee recommendation
69match
#15 - GCAP must break the mould of previous multilateral defence programme failures.
Whilst progress to date has been positive, previous multilateral defence programmes have frequently seen costs spiral and delays pile up and GCAP will have to break the mould if it is to achieve its ambitious target date. Decisions made at this early stage around partnerships, delivery structures and workshare by both Government and industry will be key to...
Matched on
terms: cost, delay
IMB recommendation
68match
Glasgow, Edinburgh and Larne House Short Term Holding Facilities (2020)
That in future projects, funding for refurbishment be allocated from a single budget, with one agent having overall responsibility for successful completion of the work. This would avoid unacceptably long delays occurring, such as that experienced in the completion of the refurbishment of the HRs at Glasgow Airport (see (c) above).
Matched on
terms: delay, project
Committee recommendation
66match
#25 - Bat protection structure increased specific railway section costs from £73 million to £168 million.
In follow–up evidence, the Department confirmed that the total cost of building the structure will be £95 million (in 2019 prices). The Department also reported that the cost of building that section of the railway, irrespective of any mitigation works, would have been £73 million, meaning that the bat structure more than doubled the costs of that section...
Matched on
terms: cost
Committee recommendation
65match
#162 - 2nd Report - The impact of environmental regulations on development
Costs can also increase owing to surveys being time sensitive and time limited. Surveys of protected species like the great crested newt can only take place at certain times of year. Lands Improvement Holdings Ltd highlighted that the need to repeat surveys which had gone out of date while a project progressed through the planning system caused costs...
Matched on
terms: cost, project
Committee recommendation
65match
#9 - Twenty-Fourth - Crossrail: A progress update
The £1.9 billion estimated cost increase consisted of £1,510 million of Crossrail Ltd costs, and £390 million of Network Rail costs. Schedule delay was the largest category of cost increase of Crossrail Ltd costs, accounting for £934 million. This was followed by £228 million of COVID-19-related costs.22 However, Crossrail Ltd told us that COVID-19 10 C&AG’s Report, para...
Matched on
terms: cost, delay
Local audit finding
65match
Public Interest Report: London Borough of Croydon
Second Croydon Report in the Public Interest, on the Fairfield Halls refurbishment delivered through the council's company Brick by Brick. The auditor concluded the council failed to ensure proper financial control and effective governance; the project was delivered late and cost substantially more than the original £30m budget.
Matched on
terms: cost, project
Committee recommendation
61match
#63 - 1st Report - Long-duration energy storage: get on with it
The Review of Electricity Market Arrangements and decisions on locational pricing should be concluded swiftly to avoid any disruptions to investment. It should ideally include a mechanism to introduce locational incentives for industrial and energy storage projects to build in favourable locations for overall grid management, alongside interventions to shield domestic consumers from price variations. We recommend that...
Matched on
terms: project
Committee recommendation
61match
#24 - 12th Report - Government compensation schemes
Sir Alan Bates told us that the Horizon schemes had become complex and legalistic in nature, increasing both the time taken to resolve cases and the cost of administering schemes60. He acknowledged that the Horizon schemes were intended to be nonlegalistic but had “got bogged down in lawyers”, which he said added complexity and increased costs.61 He told...
Matched on
terms: cost
Committee recommendation
61match
#10 - 8th Report - Northern Powerhouse Rail
We asked the Department how it would ensure within-budget delivery for Northern Powerhouse Rail phases 1 and 2 so that there is funding left for the cross-Pennine improvements in phase 3. The Department replied that its approach was to not specify outputs but instead work with local leaders 10 HMG, Northern Growth Strategy: Case for Change, CP 1549,...
Matched on
terms: cost
Committee recommendation
61match
#18 - Department made slow progress and scaled back initial carbon capture ambitions
However, the Department has made slow progress in getting the first tranche of projects running. It had initially hoped to sign contracts with the first carbon capture projects in the second quarter of 2022, but this has been repeatedly pushed back.61 It also scaled down its ambitions for the first wave of projects. In the summer of 2022,...
Matched on
terms: project
Committee recommendation
61match
#36 - Euston tunneling confirmed, but completion date for HS2 services remains unknown.
In the 2024 Autumn Budget, the government confirmed that HS2 would terminate at Euston, announcing that it would fund the work to tunnel from Old Oak Common in west London to Euston.61 The previous Public Accounts 57 Qq 78–80 58 Q 47 59 Ibid 60 Qq 45–46 61 HM Treasury, Autumn Budget 2024, 30 October 2024. 20 Committee...
Matched on
terms: cost
PFD report
57match
Evie Wright
The coroner noted a significant delay in constructing a safety-enhancing footbridge near a level crossing, despite planning permission existing since 1991, with new plans now requiring a fresh application.
Matched on
terms: delay
PFD report
57match
Liam Seager
The coroner noted the absence of a pedestrian crossing on the A12 near the collision site, expressing concern about the delay in implementing a traffic management order and the ongoing need for a dedicated crossing.
Matched on
terms: delay
PFD report
57match
Terence Gillard
The coroner expressed concerns about an uncontrolled pedestrian crossing on the A4 Great West Road lacking pedestrian lights, making safe crossing difficult. Implementation of planned safety redesigns is uncertain, with potential delays until late 2026.
Matched on
terms: delay
Committee recommendation
57match
#117 - 1st Report - New Towns: Commit and Build
We will soon by approaching two and a half years since this Government came to power. There has been a consultation and the launch of a taskforce, but construction — or even the final selection of new towns locations — are yet to take place. Therefore , alongside commitments to the urban extensions and urban regeneration projects ,...
Matched on
terms: project
Committee recommendation
57match
#23 - 1st Report - New Towns: Commit and Build
We will soon by approaching two and a half years since this Government came to power. There has been a consultation and the launch of a taskforce, but construction —or even the final selection of new towns locations—are yet to take place. Therefore , alongside commitments to the urban extensions and urban regeneration projects , construction work must...
Matched on
terms: project
Committee recommendation
57match
#183 - 2nd Report - The impact of environmental regulations on development
Where parallel tracking is not available, the Mineral Products Association criticised the lack of certainty provided by the Environment Agency on whether a site will obtain the necessary permits. “Environmental permitting is far too slow and often lags behind the planning process, effectively delaying or constraining implementation with serious adverse consequences for business.” 238 VertaseFLI Limited and Hart...
Matched on
terms: delay
Committee recommendation
57match
#62 - 1st Report - Long-duration energy storage: get on with it
The Committee welcomes the Review of Electricity Market Arrangements, although we note with concern that the second consultation, outlining initial reforms, is overdue from an original deadline of 2023. Variable electricity pricing, including pricing that varies by location, could help incentivise industry and energy storage to build in optimal locations and make use of energy at optimal times....
Matched on
terms: delay
Committee recommendation
57match
#12 - 15th Report - Government's intervention in British Steel Ltd
The NAO found that if spend continued at the current rates it could exceed £1.5 billion in 2028. This is before any potential transformation of British Steel, compensation to the owner, or exit costs.33 The Department told us as British Steel has been nationalised, an independent valuer will now be appointed to determine what if any compensation is...
Matched on
terms: cost
Committee recommendation
57match
#23 - 8th Report - Northern Powerhouse Rail
We are concerned that this partnership-based system is not clear on responsibilities and may not be robust enough for difficult trade-off decisions between local areas.48 For example, an underground station at Manchester Piccadilly would enable more development opportunities above the station than alternatives at surface level, but is expected to be more costly and could therefore reduce the...
Matched on
terms: cost
Committee recommendation
57match
#11 - 5th Report - MoD follow-up Spring 2026
The Department said that nine DNE programmes have whole-life costs of more than £10 billion, including three submarine programmes, maintaining the existing warhead and designing its replacement, and building complex infrastructure facilities at three sites.25 The Department stated that the cost of Dreadnought, which is due to enter service in the early 2030s as the replacement for the...
Matched on
terms: cost
Committee recommendation
57match
#8 - Twenty-Fourth - Crossrail: A progress update
The estimated cost of Crossrail has increased by £1.9 billion since we last reported and now stands at £18.9 billion.18 This excludes the £1.1 billion cost of the new trains and the depot at Old Oak Common which have historically been reported separately.19 The estimated cost has increased because the programme was further from being complete than anyone...
Matched on
terms: cost
Committee recommendation
57match
#23 - HS2 Ltd concluded £95m bat tunnel was most efficient option after considering 15 alternatives.
HS2 Ltd confirmed that it was its decision to build the structure and not one required by Natural England. However, the Department and HS2 Ltd told us that, despite its cost, that they had concluded the ‘tunnel’ structure was the most efficient and appropriate way to protect the bats out of the 15 options considered.39 Other options were...
Matched on
terms: cost
IMB recommendation
56match
Kirkham (2021)
The Board is pleased that work has eventually started on the demolition of the old hangars, however progression has been much slower than planned and additional costs are being incurred. The funding included the building and furnishing of a new gym which is expected to be the final stage of the project. The Board wishes for a reassurance...
Matched on
terms: cost, project
IMB recommendation
56match
Ford (2025)
As we have reported for some years, the building infrastructure across Ford is failing, with each occurrence being addressed with short-term fixes, which, in the long run, cost the taxpayer more. Will the Minister commit to both undertaking a detailed survey and investigation of the existing fabric and services and to setting out a clear timetable for the...
Matched on
terms: cost
NAO recommendation
56match
Investigation into the East West Rail project (Oxford – Cambridge)
To maintain an affordable programme of work, DfT and EWR Co should reflect on learning from other recent rail projects and assure themselves that they have adequate controls and governance in place to monitor and manage costs.
Matched on
terms: cost, project
Committee recommendation
53match
#165 - 2nd Report - The impact of environmental regulations on development
The Government should ensure that where planning applications are delayed in the planning system beyond the statutory or agreed time limit the lifespan of necessary surveys is extended. Data and analysis
Matched on
terms: delay
Committee recommendation
53match
#73 - 2nd Report - The impact of environmental regulations on development
Large, and growing, up-front costs disincentivise developers of all sizes from entering the housing market. For smaller developers with limited access to finance they are a greater burden. Whilst developers are willing and able to cover these costs in many circumstances, they should not be asked to fund inapplicable surveys.
Matched on
terms: cost
Committee recommendation
53match
#58 - 2nd Report - The impact of environmental regulations on development
The interaction between planning permission and permitting is causing delays on some sites, with a specific impact on the development of brownfield land.
Matched on
terms: delay
Committee recommendation
53match
#51 - 2nd Report - The impact of environmental regulations on development
The Government should ensure that where planning applications are delayed in the planning system beyond the statutory or agreed time limit the lifespan of necessary surveys is extended.
Matched on
terms: delay
Committee recommendation
53match
#2 - 15th Report - Government's intervention in British Steel Ltd
The Department does not know how much the intervention will cost the taxpayer. As at March 2026, spending was expected to reach £642 million by 30 June 2026, including adviser costs. Actual funding was £555 million by 18 June 2026 (not including adviser costs). The Department continues to fund the company now that it is nationalised, without a...
Matched on
terms: cost
Committee recommendation
53match
#27 - 5th Report - Data and digital trade
The delay to the Government’s Single Trade Window, originally planned to be rolled out towards the end of 2024, highlights the budgetary and resource implications of trade digitisation schemes. Exploring technological solutions to facilitate and ease border processes is highly desirable, but complicated, resource intensive and expensive. However, we also note that other countries have been successful in...
Matched on
terms: delay
Committee recommendation
53match
#22 - 12th Report - Government compensation schemes
We asked the Departments why there is such substantial variation in the time taken to settle claims. DBT responded that it is waiting for people to submit full claims on the Horizon Compensation Schemes and it is keen to pay victims.50 The Home Office said that, on the Windrush Compensation Scheme, launching without case-working capacity was a serious...
Matched on
terms: delay
Committee recommendation
53match
#21 - 12th Report - Government compensation schemes
Representatives of victims told us that prolonged delays in settling claims were unacceptable and had serious consequences for victims. Reverend Clive Foster informed us that Windrush victims were waiting 14 months to get a result on a claim in 2020, and it was totally unacceptable 43 C&AG’s report para 7 44 C&AG’s Report, para 2.19 45 Qq 4,...
Matched on
terms: delay
Committee recommendation
53match
#8 - 10th Report - Government shared services
The Cabinet Office told us that its Shared Services Strategy is now entering an important phase.13 In the Matrix cluster, plans had foreseen two departments joining shared services in July 2026.14 The Cabinet Office now expects the first two departments (the Cabinet Office and the Department for Culture, Media and Sports) to onboard to Matrix in December 2026...
Matched on
terms: delay
Committee recommendation
53match
#25 - 1st Report - Rewiring the state: Delivering digital government
We welcome GDS’s commitment to work with HM Treasury to ringfence funding to address legacy systems, particularly given the significant costs that remediation will create for departments and public bodies that are already under financial pressure. In its response to this report the government should confirm which programmes have been ringfenced or submitted for consideration. (Recommendation, Paragraph 80)
Matched on
terms: cost