Press Release - Construction of Portcullis House, the new
Parliamentary building
19 April 2002
Sir John Bourn, head of the National Audit Office, has published
his report on the construction of Portcullis House, the new
Parliamentary building. Portcullis House, which provides offices
for 210 Members of Parliament and 400 staff together with committee
rooms and other facilities, was completed in August 2000 at a cost
of £234 million. The NAO examined the management of the
building's construction from initial approval1,2 in 1993
through to completion in August 2000, to see whether the building
was completed to the time, cost and specification agreed or
forecast at the outset of the project.
The NAO found that the House obtained the high standard of
architectural design, materials and workmanship that it had
specified, and the building was completed broadly to time. While
the 1993 forecast of costs was exceeded, the 1998 construction
budget approved by the House of Commons Commission was not. In
these terms, therefore, the House achieved value for money in the
project to construct Portcullis House.
Sir John highlights the points arising from this case that are
relevant to public bodies undertaking major construction projects.
In particular he emphasises that bodies should:
- recognise the importance of managing the risks associated with
innovative design;
- establish at an early stage a board of senior officials,
chaired for larger projects at the highest level, to oversee the
project;
- provide appropriate training, advice and support to key
decision makers;
- carry out investment appraisals or lifetime costing exercises
prior to approval;
- use value engineering to explore the scope to meet the
requirement at lower cost;
- maintain a clear distinction between forecasts made at the time
of the initial decision to undertake the project, and later
forecasts incorporating agreed changes in costs;
- consider regularly publishing information on the cost of major
projects;
- ensure that liquidated damages clauses are based on sound
estimates of likely costs;
- ensure that there is adequate control of professional fees and
expenses when selecting and appointing professional advisors;
and
- undertake a review of the operation of the building in
use.
The House took action in line with a number of these
recommendations.
Notes for Editors
- From April 1992 responsibility for the project to build
Portcullis House rested with the House of Commons officials under
the direction of the House of Commons Commission, the statutory
body, made up of six senior MPs, responsible for the administration
and accommodation of the House of Commons. Prior to this date,
responsibility lay with the former Department of the
Environment.The starting point for this review was the proposal
approved by the House of Commons Commission in May 1993.
- Press notices and reports are available from the date of
publication on the NAO website at http://www.nao.org.uk/ Hard copies can
be obtained from The Stationery Office on 0845 702 3474.
- The Comptroller and Auditor General, Sir John Bourn, is the
head of the National Audit Office employing some 750 staff. He and
the NAO are totally independent of Government. He certifies the
accounts of all Government departments and a wide range of other
public sector bodies; and he has statutory authority to report to
Parliament on the economy, efficiency and effectiveness with which
departments and other bodies have used their resources.
Press Notice 35/02
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