Continuing the theme of UK based projects such as Wembley and Scottish Parliament, the BBC is a state funded provider of television and radio in the UK. The UK’s National Audit Office reviewed 3 recent construction projects by the BBC, 2 of which exceed cost and budget and 1 came in below budget the full report is here.
The key findings are as follows:
- The projects did not identify benefits clearly from the outset, making it hard to assess success objectively
- The importance of financial contingencies – the reason the one project (Salford Quays) came under budget was because it had financial contingencies at just over 10% of the initial budget. The projects which went over budget had much smaller contingencies.
- Change management, all projects had material changes during their lifetime, an average of 41 per project, which generally lead increased costs and in some cases could have been avoided through more thorough planning efforts.
- There is a need to better assess skills required to execute the project relative to the organization’s existing capabilities.