The final cost of the parliament could rise further

He made the admission in his latest progress report to members of Holyrood's finance committee.

Mr Reid told MSPs in his letter that the latest delays would lead to an increase in the cost of the project.

However, he also revealed that an agreement to cap consultants' fees had saved �4.6m.

The revelations have once again been met with anger by opposition politicians.

Mr Reid said construction managers Bovis Lend Lease had told him that the projected completion date had to be extended from November 2003 to July 2004.

ESTIMATED COMPLETION DATES November 2003 - MSP offices and Queensferry House January 2004 - Towers one and two February 2004 - Towers three and four March 2004 - Debating chamber, press tower and Canongate building July 2004 - Lightwell area and final handover

He said the biggest challenge was the completion of the lightwell area - an access area with overhead glazing.

"Despite very considerable efforts to meet the programme, it has proved impossible," he said.

"The key reason is that Drawn Metal, the window contractor, has been unable to fit the windows quickly enough, largely due to the additional blast proofing.

"The result of this is that Mero, the specialist glazing contractor, cannot access the same lightwell area to complete their works.

"These delays have a knock-on impact on our ability to fit out the chamber and other critical works."

Last month Mr Reid told the finance committee that the estimated cost of the project stood at �374m.

On Thursday, he said that this figure had been reduced by �4.6m as a result of a cap on consultants' fees.

No further fees will be paid on any additional construction costs during the remainder of the project.

Financial implications

"For the first time in the project there has been a real cut in cost," said Mr Reid.

"But it is to be regretted this comes simultaneously with an increase in time which will have financial implications."

He said that the cost implications of the latest delay would probably be detailed in his September report.

Insiders say the work could add between �15 and �25m to the price of the project.

However, that figure was dismissed as "sheer speculation" by Mr Reid.

Scottish National Party leader John Swinney said the project had become "a national disgrace".

The Holyrood project has been beset by problems

"The open ended contract signed by the Labour government gave the contractors a blank cheque that they have cashed time after time after time," he said.

He said the savings from the cap on consultants' fees was the only piece of good news.

However, Scottish Conservative leader David McLetchie said the �4.6m reduction was "a drop in the ocean".

"It has come to the point where I can no longer fake surprise at the mismanagement of Scotland's national embarrassment," he said.

"The presiding officer conceded that there had been another eight-month delay in the finishing time, and he has been unable to rule out what we have been long fearing - that the parliament will cost 10 times the original estimate."

Draw a line

Adrian Barrick, editor of Building Magazine, said the presiding officer should explain why there are so many problems.

He said: "I think he's got to answer the question why are all these changes being made at this late stage when everyone felt that a line had to be drawn under the project back in the spring.

"As recently as last month there was something like 300 variations to the contract being handed out.

"That is clearly the sign of a project that is clearly still some way out of control."