The National Audit Office has finally released reports on the procurement of new buildings for the security services which have been kept secret since the early nineties. The reports, on the purchase and refurbishment of Thames House for MI5 and on the purchase and fitting out of Vauxhall Cross (MI6), show the combined cost of the two projects as £547m against initial estimates of £252m.

The full text of the original NAO reports, including the 1993 report of the Public Accounts Committee, is available on the Internet (see link below). They make fascinating reading as they cover in detail the convoluted property deals for the two buildings, cost increases for the refurbishment and fitting out, the appointment and cost of consultants, project management and space allocation.

Click Here to read the full report

The refurbishment of Thames House (originally owned and partly occupied by ICI) comes in for particular criticism. The estimate rose steadily from £60m to £251m before the final cost settled at £227m. Consultancy and management fees came to £37m, about 16% of total costs. The reports tell a tale of 'unusual financial practices', inappropriate estimating techniques, disagreements over strategy and late notice of additional space demands. They should give students of property and project management plenty of essay material. Richard Byatt