Watchdog calls for robust costing

Better information on major projects was needed, said auditors

Major public construction projects such as roads and railways need to be costed more robustly before being given the go-ahead, a report has warned.

Spending watchdog Audit Scotland said good decisions could only be made if there was accurate information about costs, value for money and timescales.

The report looked at 43 major projects completed between 2002 and 2007.

It found only about 40% were completed within the costs estimated at the time they were approved.

Spending on such projects will rise to �10.5bn over the next three years.

Concern was also raised in the Audit Scotland report about several current projects - including the M74 completion and the Stirling-Alloa-Kincardine rail line - where the costs were underestimated.

The report said those making decisions needed clearer and more accurate information about major infrastructure projects.

Decision 'vindicated'

Scotland's auditor general Robert Black said projects mostly came in close to the costs and deadlines set when contracts were awarded.

But he warned: "There needs to be improvement in the information that is available at the earlier stage when important choices are being made about which projects should be committed."

The report said most projects were successfully delivered but it highlighted the fact the cost of the M74 extension, estimated at �245m when it was approved, had risen to �692m.

It was a similar case with the Stirling to Alloa railway line, which went up from �35m to �85m, and phase three of Edinburgh Prison, which saw a rise of �18m to �25m.

The Scottish Prison Service said the increase - which followed a change to the specification - had been funded from the savings made on other projects.

The Scottish Government said the findings had vindicated the decision to press ahead with its Scottish Futures Trust, which ministers said was better value to the taxpayer than PFI/PPP schemes.

Finance Secretary John Swinney said: "The Audit Scotland report highlights the importance of efficient and effective planning of our capital investment programme of some �35bn over the next 10 years.

"The government believes that this is essential, which is why we are establishing the Scottish Futures Trust."

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