Intro to build environment Essay Example | Topics and Well Written Essays - 2250 words

Intro to build environment - Essay Example As early as May 1999, even before the actual construction had begun the cost estimates had been revised with additional money required for Site acquisition, demolition and archaeology; Fees, VAT and contingencies; and fit-out, loose furniture, IT, etc, and a figure of 90m for the projected costs of the project was produced. This was immediately revised to 109m as being the estimated cost of the project, including construction cost of 62m (SPCB 1999). The main reasons cited for cost increase were: a) increase in floor area to accommodate additional staff and offices; b) an increase in the amount of circulation space required; and c) changes to the specification for a formal entrance. The time for completion, including all internal fit-outs, was projected as the autumn of 2001. The project was finally completed in 2004 at a cost of 375.8m! There had been major changes to the project specification since the first cost estimate was produced for the project. These included an increase, between December 1997 and February 2000, of 11,240m2 (a 56% increase) in the total gross area (from 20,070m2 to 31,310m2). If one excludes the additional car parking provision, there was, over the same period, an increase of 13,109m2 (an 80% increase) in the gross area (from 16,470m2 to 29,579m2) (all numbers from Spice Briefing, ibid). In relation to the costs, the letter of 10 June 2003 r... In relation to the completion date, the letter of 10 June 2003 stated that the target completion date was still November 2003 but that more detailed information was being sought on this matter. The Auditor General of Scotland, Mr. Black, investigated the reasons for the gross cost overrun and delay in execution of the project. His report looked at questions of cost, how resources had been used and managed, and the overall conduct of procurement. Construction projects often run into problems and fail to meet the desired objective. The objective, in the eyes of the client, can be summarized by stating that it is 'value for money' which implies that, even if the building is not the cheapest, the entire combination of whole-life costs and quality costs is optimal. Uncertainty is an essential element of all projects especially those related to construction. These can be categorised under four broad categories: 1. The scope of the work may change, 2. The quality specifications of the work to be done can change, 3. The costs might escalate, and 4. The time scheduled for completion may not be correct Increased integration between financial and real sectors of the economy, and major capital commitments in the building, means that the poor quality of risk management in construction has perhaps a greater significance at present than at any other time since the 1970s (Flanagan & Norman, 1993). In this report we address the problem of the cost and time over-run that resulted from a faulty procurement system adopted in the construction planning and execution process for the new parliamentary building in Holyrood; in light of the report of the Auditor General of