An independent consortium has published their report into the scenarios for major repair and renewal at the Palace of Westminster, highlighting the poor condition of many parts of the building and considering the impact of five different options to manage the building and its fabric.
Deloitte LLP writes:
A Deloitte-led consortium with AECOM and HOK has published an Independent Options Appraisal (IOA) report detailing a range of scenarios for carrying out a major restoration and renewal programme for the Palace of Westminster.
Dr Richard Ware, programme director for Palace of Westminster Restoration and Renewal, says: ‘The Palace has reached a turning point in its history, with many features needing major renovation. These include antiquated heating, ventilation, water, drainage and electrical systems combined with extensive stonework decay, leaking roofs, corrosion and the need to improve fire containment. Even the intensive programme of urgent repairs carried out over the last five years is barely scratching the surface.’
The IOA specifies five scenarios across three potential delivery options. These range from a ‘do minimum’ multi-phased approach, to making significant improvements in an intensive single phase. The consortium’s potential delivery options of how the work will be carried out were identified as:
- A rolling programme of works over a significantly prolonged period of time, delivered around continued occupation of the Palace – potentially 32 years;
- A partial move out, while a programme of works is conducted over a shorter period of time, during which each House would, in turn, move out to a temporary location and return upon completion – potentially 11 years; and
- A full move out, during which the Palace would be fully vacated while works are undertaken over a more concentrated period of time, with the Houses returning upon completion – approximately 6 years.
The times and costs in the IOA are based on an assumed start date of 2020, on an assumed scope and are estimated in three bands: upper, mid and lower range. Mid-range costs are: (all figures rounded to two significant figures)
| Scenario | Renovation scope | Most likely duration | Mid-range full capital expenditure estimate |
| Rolling programme | minimum standards, including fire containment, improved lifts and step-free access to most areas | 32 years | £5.7bn |
| Partial decant | as above | 11 years | £3.9bn |
| Partial decant | as above plus some improvements to business and public amenities (medium outcome) | 11 years | £4.4bn |
| Full decant | as above | 6 years | £3.5bn |
| Full decant | renovation with significant improvements | 6 years | £3.9bn |
This table lists mid-range estimated costs for the full capital expenditure based on Q2 2014 undiscounted figures. Estimated capital expenditure includes construction works and delivery, temporary accommodation, programme management, future inflation, an allowance for risk, and VAT. A detailed breakdown of estimated costs for each scenario can be found in Volume One of the IOA. All calculations assume that temporary accommodation is relinquished once the programme is complete.
Alex Bell, IOA lead and partner at Deloitte Real Estate, says: ‘Our analysis indicates that the restoration and renewal of the UK’s most famous building will be a challenging and potentially expensive exercise, but that it could also generate significant benefits to Parliament and the UK more widely. Members and peers face unenviable decisions, although recent mega-project success stories such as London 2012 and Crossrail demonstrate the UK’s capability to deliver such projects successfully.’
John Hicks, UK head of government & public sector at AECOM, comments: ‘The report intentionally does not contain recommendations on which scenario to choose. As technical lead for the consortium team, AECOM has focused on helping define the ‘what’ in terms of scenarios and the ‘how’, as well as ‘when’ the project could be delivered. This focus, together with both capital and life cost, and robust analysis of the engineering challenges from replacement services to environmental issues, have been principal ingredients of the IOA report.’
Larry Malcic, design principal of HOK, adds: ‘Few landmarks can rival the enormous historic, cultural and political significance of the Palace of Westminster. The challenges involved in its restoration and renewal are unique. Our extensive understanding of the building’s architectural heritage, underpinned by our two decades of experience working at the Palace and across Whitehall, has informed the report’s findings on what each scenario would aim to achieve and how to manage such a complex design project.’
Bell concludes: ‘The Joint Committee is expected to make its recommendations early in 2016 with an anticipated decision in principle by members of both Houses in spring 2016. Once the preferred way forward has been identified, the scope will be firmed up and more accurate costs will be developed. The report should not therefore be regarded as a bid for funding in the future. The scale of the work required on the Palace is such that it will have to be planned several years in advance. The Restoration and Renewal Programme itself is unlikely to start before 2020/21.’
Find out more about the Palace of Westminster works, including videos demonstrating why work is required
View a historical timeline showing the development of the buildings
