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| BBC 'overspends' on building work | BBC 'overspends' on building work | |||
| (9 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 Quay 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 Quay project, which cost £188m, ran into delays. | ||||
| It had been originally budgeted at £126m, although this was revised upwards when the BBC opted for a bigger building and more advanced technology. | It had been originally budgeted at £126m, although this was revised upwards when the BBC opted for a bigger building and more advanced technology. | |||
| The report added that the BBC's management of the three major projects had subsequently improved. | The report added that the BBC's management of the three major projects had 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. | |||
| Original budget | Final cost/Current forecast | Operational (target) | | | Original budget | Final cost/Current forecast | Operational (target) | | Pacific Quay, Glasgow £125.6m(May 2002) £188.1m(final cost)Jul 2007(June 06)Salford Quays, Manchester £953m(Dec 2006)£877m(forecast)Dec 2011(Dec 2011)Broadcasting House, London £991m(July 2003)£1,046m(forecast)Apr 2011(Dec 2008)
| SOURCE: NAO | SOURCE: NAO |