The second example concerns the third phase of a hospital redevelopment project. At £ 152m, Guys House doubled its original budget (NAO, 1998). A few increases in cost were revealed as being inescapable because of the alterations in the health services statutory requirements, building laws and regulations and a new liability for tax; however, other raises in costs might have been evaded. These inclinations in cost were due to failure to freeze design, remarkable design changes, obstructions to the building works, an immense amount of arguments and claims, and the bankruptcy of major works package contractors.
The NAOs suggestions included the necessity to have full and realistic costings backed up by complete risk analysis, and to recognize the risks involved in using a distinct contract strategy and to take proper action to decrease them. The third sample of this problem is the new parliamentary office building that is opposite the Houses of Parliament in London (Barrie, 1999a). At £ 250m, Portcullis Houses budget doubled (Wheeler, 1998). Built on a completely difficult site entirely with a precise project brief, these characteristics have steered to this turning into one of the most expensive buildings ever erected in Britain (Barrie, 1999b).
The first budget estimated was reconsidered after the cladding works package tender came in completely over the budget, and the budget had to be raised once more after issues had been caused by other complications, as there had been an underground station sitting directly below the site (Barrie, 1997a). A statement from a Member of Parliament set out the justification for the increased costs as attributed to inflation, delay in handing over the site and for approved additional design costs (Baldock, 1999).
The latter includes bronze cladding to extend the life of the building, electronic door locks, internal security measures, the incorporating of the parliamentary office building that is opposite the Houses of Parliament in London (Barrie, 1999a).
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