Councils under fire for road building costs

15 November 2007
 
Local authorities and the Highways Agency have come under fire from MPs for considerably underestimating road building scheme costs.

Schemes so far completed within local transport plans cost 18% more than estimated, with current schemes forecast to run in at 31% above original estimates.

The HA fares worse, with the 36 schemes completed by September 2006 in the targeted programme of improvements costing 40% more than initially estimated.

The Public Accounts Committee said estimates were prepared at an early stage, before risks were fully identified, but it also criticised the HA and Department for Transport for not monitoring trends in the construction market closely, relying instead on inaccurate historical data on construction costs.

It also urged the HA to commission an assessment of the effectiveness of early contractor involvement contracts and publish the findings.

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