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22/03/2013
DCAL 'Overspends £25m On Landmark Buildings'
The Department of Culture, Arts and Leisure (DCAL) has been criticised by the audit office for allowing seven landmark buildings to go over budget.
An outdoor pursuits centre, five arts buildings and the public records office were the multi-million pound building projects. They were largely paid for by DCAL.
However, the costs were over budget by £25m and the auditor said those who plan schemes are often too optimistic about the cost. The report also calls for DCAL to look closer at future projects to avoid similar problems occurring.
The five arts projects in Belfast were the Grand Opera House, Crescent Arts Centre, Ulster Museum, Lyric Theatre and the Mac. The Public Records office and Tollymore National Outdoor Centre were the other two projects examined by the audit office.
It said part of the increase was due to rising prices between plans being completed and construction taking place.
Comptroller and auditor general Kieran Donnelly said: "It is disappointing that most of the construction work did not go according to plan, with delays and cost overruns which resulted in all seven projects needing additional funding."
The combined total cost of the seven projects was £103.4m; £24.m (31%) more than the £78.6m estimated in the original business cases.
The rate of increase ranged from 3.2% for the Public Records Office to 91.3% for the Metropolitan Arts Centre (MAC). Costs for the MAC, which opened last year and has staged world-class exhibitions and theatre, jumped from £9.2m to £17.6m.
Most projects experienced delays when compared to initial forecasts, while changes in the business cases, the rising cost of construction and unclear objectives contributed to inflation across the projects.
Six of the seven projects experienced delays ranging from seven months to two and a half years. The business case for the Lyric provided no indication of an estimated completion date.
The firm behind the Lyric Theatre in Belfast, Gilbert Ash NI Ltd builders, made a £150k donation towards construction costs, which was disclosed immediately by the Lyric. The firm bid for and won the £10.9m contract in a separate tendering process carried out by a different team from the Lyric's fundraising department.
(JP)
An outdoor pursuits centre, five arts buildings and the public records office were the multi-million pound building projects. They were largely paid for by DCAL.
However, the costs were over budget by £25m and the auditor said those who plan schemes are often too optimistic about the cost. The report also calls for DCAL to look closer at future projects to avoid similar problems occurring.
The five arts projects in Belfast were the Grand Opera House, Crescent Arts Centre, Ulster Museum, Lyric Theatre and the Mac. The Public Records office and Tollymore National Outdoor Centre were the other two projects examined by the audit office.
It said part of the increase was due to rising prices between plans being completed and construction taking place.
Comptroller and auditor general Kieran Donnelly said: "It is disappointing that most of the construction work did not go according to plan, with delays and cost overruns which resulted in all seven projects needing additional funding."
The combined total cost of the seven projects was £103.4m; £24.m (31%) more than the £78.6m estimated in the original business cases.
The rate of increase ranged from 3.2% for the Public Records Office to 91.3% for the Metropolitan Arts Centre (MAC). Costs for the MAC, which opened last year and has staged world-class exhibitions and theatre, jumped from £9.2m to £17.6m.
Most projects experienced delays when compared to initial forecasts, while changes in the business cases, the rising cost of construction and unclear objectives contributed to inflation across the projects.
Six of the seven projects experienced delays ranging from seven months to two and a half years. The business case for the Lyric provided no indication of an estimated completion date.
The firm behind the Lyric Theatre in Belfast, Gilbert Ash NI Ltd builders, made a £150k donation towards construction costs, which was disclosed immediately by the Lyric. The firm bid for and won the £10.9m contract in a separate tendering process carried out by a different team from the Lyric's fundraising department.
(JP)
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