26 January 2007
Some major government scientific projects are set to end up 80% over budget, according to a report this week from the National Audit Office.
Currently, £830m has been allocated from the government's science budget to build and run 15 projects. They are expected to cost £1.2bn to complete.
The report, published on January 24, says that of the ten projects under way, total capital expenditure is forecast to exceed approved budgets by 6%, while some projects are up to a year late.
'The forecast operating costs of some projects have increased by large amounts compared to estimates when their business cases were approved, with increases of over 80%,' the NAO notes.
Its recommendations include strengthening project appraisal, better sharing of procurement and the use of incentives to encourage contractors to control costs.
Auditor general Sir John Bourn said: 'The introduction of a shared plan covering all the research councils is beginning to deliver new large facilities… Improvements are needed however, if the benefit of the planned £1.2bn investment in scientific facilities is to be maximised.'
PFjan2007
