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BBC 'overspends' on building work BBC 'overspends' on building work
(10 minutes later)
The BBC has been criticised for facing "serious difficulties" over its programme of major new building works.The BBC has been criticised for facing "serious difficulties" over its programme of major new building works.
The extension of Broadcasting House has cost £100m more than planned and was due for completion in 2008, a National Audit Office report found.The extension of Broadcasting House has cost £100m more than planned and was due for completion in 2008, a National Audit Office report found.
It added the project has suffered from "weak governance", while the BBC's Salford centre is set to be completed around £76m under budget.It added the project has suffered from "weak governance", while the BBC's Salford centre is set to be completed around £76m under budget.
BBC Trustee Jeremy Peat admitted that licence fee payers were "let down".BBC Trustee Jeremy Peat admitted that licence fee payers were "let down".
'Room for improvement''Room for improvement'
The BBC is expected to carry out an imminent check on all its projects in the wake of the report.The BBC is expected to carry out an imminent check on all its projects in the wake of the report.
It was commissioned by the BBC Trust, which is in place to ensure that value for money is delivered, and concluded the three building projects have failed to do so.It was commissioned by the BBC Trust, which is in place to ensure that value for money is delivered, and concluded the three building projects have failed to do so.
Mr Peat admitted that "serious mistakes" had been made in the early part of the Broadcasting House project.Mr Peat admitted that "serious mistakes" had been made in the early part of the Broadcasting House project.
"But there is still considerable room for improvement, and consequently we will follow up the National Audit Office's recommendations vigorously and as a matter of urgency," he added."But there is still considerable room for improvement, and consequently we will follow up the National Audit Office's recommendations vigorously and as a matter of urgency," he added.
The corporation is spending £2bn over a long term period on its new facilities.The corporation is spending £2bn over a long term period on its new facilities.
The new broadcasting centre at Pacific Quays in Glasgow went over budget by £62m and faced a year's delay. The new broadcasting centre at Pacific Quay in Glasgow went over budget by £62m and faced a year's delay.
The report recommended that for future projects "proposals submitted by management are reliable and subject to effective challenge by the BBC Trust".The report recommended that for future projects "proposals submitted by management are reliable and subject to effective challenge by the BBC Trust".
It also revealed that the Broadcasting House project based around the existing building in central London faced problems from the outset after a dispute with the developer cost £45m to resolve.It also revealed that the Broadcasting House project based around the existing building in central London faced problems from the outset after a dispute with the developer cost £45m to resolve.
The Pacific Quays project, which cost £188m, ran into delays and was part-funded by unused contingency money. The Pacific Quay project, which cost £188m, ran into delays and was part-funded by unused contingency money.
It had been originally budgeted at £126m.It had been originally budgeted at £126m.
But the report added that the BBC's management of the three major projects has subsequently improved.But the report added that the BBC's management of the three major projects has subsequently improved.
BBC Director general Mark Thompson is expected to report his findings on the ongoing projects to the trust in the next month.BBC Director general Mark Thompson is expected to report his findings on the ongoing projects to the trust in the next month.