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V&A Dundee 'little prospect' of being delivered on budget from start

John McClelland CBE delivered his report into spiraling cost of V&A Dundee on Friday.

V&A Dundee
V&A Dundee

An investigation into the spiralling costs of building the V&A Dundee has found that there was "little prospect" of the project being delivered on budget.

In January it was revealed that the £45m budget first forecast to build the museum had risen to more than £80m.

John McClelland CBE delivered his report on Friday which said the initial budget was not sufficiently robust.

The review also concluded that more frequent and direct reporting about the progress of the project to councillors would have been "helpful".

Mr McClelland recommended improved record keeping and improved due diligence on the cost of major projects before formal contractual arrangements are finalised in future.

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.

"Firstly the budget of £27m and its base of £4500 psm was deliberately set at a middle of the range value with the intent of having a building of high quality but not an elite structure such as a number of others, including Glasgow Riverside Museum at £6,700 psm.

"The fact that this below average estimate was also expected to cater for a building built offshore added to the risk."

The former Rangers FC chairman was appointed to lead the independent review into why the building costs rose dramatically.

Dundee City Council was reported to Audit Scotland in January when details about the project being over budget were made known.

https://www.youtube.com/watch?v=bI-D6TDYg6k | youtube

The ambitious project was initially predicted to cost £45m, later updated to £49m, and be opened to the public in 2015.

However, the council confirmed that the building will now cost £80.1m, some £31m more than the approved budget.

The new museum is the cornerstone of Dundee's £1bn waterfront development, which is expected to generate around 4800 jobs in the city.

The V&A is expected to bring an estimated £11.6m economic boost to the city per year and generate more than 270,000 visitor engagements a year from year three onwards.

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