Committee publication · Correspondence · 18 December 2025

Note to Chair of Finance Committee - Victoria Tower Project, December 2025

Summary

A note to the Chair of the House of Commons Finance Committee setting out the business case, schedule, cost history, and contract arrangements for the Victoria Tower restoration project. The project has experienced schedule delays (completion now forecast for April 2035 versus July 2032) and cost escalation from £166m (OBC-A, September 2021) to £252.79m (FBC Final, April 2025), driven by restricted working hours, heritage requirements, inflation, and market conditions. The project received a Green Delivery Confidence rating in March 2025.

Key findings

Completion date has slipped from 9 July 2032 to 26 April 2035 (risk-adjusted P90 date), with contract execution now expected January–February 2026 rather than April–May 2025.
Total project cost increased from £166m (OBC-A, September 2021) to £252.79m (FBC Final, April 2025); net increase of £21.85m from FBC-PTE1 (£230.94m) driven by inflation, market conditions, and commercial negotiations saving £15m.
Key cost drivers between OBC and FBC-Final: restricted working hours consultation (£ not itemised), heritage and structural scaffold design evolution, lessons from Elizabeth Tower project, procurement costs (£600k for second exercise, £1m for first), and inflation adjustments (£0.6m client, £4.8m works at FBC-PTE2).
Gateway 3 (Investment Decision) review in March 2025 awarded Green Delivery Confidence Level; reviewers found costs and schedule aligned to expectations with no major issues, though minor recommendations were made and actioned by April 2025.
Main construction contracts use NEC4 Engineering and Construction Contract (Option B, Priced contract with bill of quantities), mandated at Parliament, with Parliament's robust Change Management Process governing all scope, time, or cost variations.

Tone

Procedural

Topics

public-financecapital-projectsheritageparliament-operations

Key actors

House of Commons Finance Committee, Marianne Cwynarski, House of Lords stakeholders, Project Board, Executive Sponsor Board

Notable line

“… the anticipated costs and schedule remain aligned to current expectations and there is confidence that the logistics, risks and stakeholder management have been well thought through.”

Key Quotes

“… the anticipated costs and schedule remain aligned to current expectations and there is confidence that the logistics, risks and stakeholder management have been well thought through.”
— Gateway Review (March 2025) · Gateway 3 (Investment Decision) review findings on project confidence

“The cost of the second procurement exercise was £600K. The cost of the first procurement exercise was £1M.”
— Note author · Responding to Finance Committee inquiry on procurement costs

“The direct inflationary adjustments that were made at FBC-PTE2 were £0.6M within the client costs increase and £4.8M within the works costs increase.”
— Note author · Explaining inflation impact on project costs between first and second tender

“All changes impacting Victoria Tower have gone (and are still going) through this rigorous process.”
— Note author · Describing Parliament's Change Management Process for project variations

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Source · parliament.uk record ↗