V&A Dundee costing ‘not sufficiently robust’

A review into the £80m price tag of Dundee’s V&A museum has concluded that the way the costs were estimated was not “sufficiently robust” to address the building’s “unique challenges”.

The independent review also said that more frequent and direct reporting to councillors “would have been helpful”.

The cost of the project had previously been estimated at £45m.

Procurement expert John McClelland has made a number of recommendations which will be considered by councillors.

He was commissioned by councillors earlier this year to examine the reasons for the spiralling cost of the project.

He was also asked to identify lessons that could be learned.

His report concluded that the international benchmarking approach, which formed the basis of the original project cost estimates, was not robust enough to address the challenges associated with Japanese architect Kengo Kuma’s award-winning design.

The report said: “As the detailed design process moved forward, it became apparent that the technical requirements and construction method involved would place real pressure on the budget.”

Referring to the lack of reporting to councillors since 2011, Mr MClelland said: “Although a partnership joint venture, the council carries a significant element of the risks involved in this transformational investment in the city and it is important that scrutiny and assurance arrangements are effective.”

In summary, he said: “In my opinion this project had, from the beginning, little prospect of being delivered for the original budget due to an accumulation of factors that mitigated against that outcome being achieved.”

He said the fact that the below-average estimate was also expected to cater for a building built offshore added to the risk.

Mr McClelland also said it was not clear if the judging panel of the winning design had access to concerns about cost estimates raised by independent professionals.

As a result it may not have been possible at that stage to appreciate that the complexity of the winning design could result in significantly higher costs.

Recommendations included:

• An urgent review into the £4.8m budget for furniture, fittings and equipment which was developed in 2010.
• Decision making for major projects including the selection of designs should be supported by fully detailed cost estimates prepared either in-house or externally by independent quantity surveyors
• Complete and detailed records should be maintained covering the deliberations and decisions of all panels or committees involved in the selection of contractors or service providers
• Dundee City Council should appoint a full time in-house project manager for the V&A building along with a full time cost manager.

Mr McClelland said that since January this year, a project board had been established and regular progress reports would be submitted to the council’s policy and resources committee at key stages in the development.

Councillor Ken Guild, convener of the policy and resources committee, said: “We are working with our partners and BAM Construction to ensure that this unique building helps boost the economy, cultural offer and confidence of our city.‎

“Mr McClelland’s expertise has helped identify a number of issues which will help us on other capital projects as well.

“Construction of the V&A Dundee is now under way and the project is proceeding successfully.”

A Scottish government spokesman said: “We welcome the McClelland report and the comprehensive analysis of the project it provides, as well as Dundee City Council’s response to the report and the actions they are taking to address the recommendations.

“V&A Dundee will be an iconic statement at the heart of the Dundee Waterfront development.

“The signature building will create local jobs and contribute significantly to the regeneration of Dundee and its waterfront, giving the city and Scotland a world-class design museum and visitor attraction.”

The outcome of the review will be considered by councillors on Monday 24 August.

BBC