Consortium presents restoration and renewal scenarios

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 build…