Committee publication · Correspondence · 18 December 2025

Note to Chair of Finance Committee - New Palace Yard Project, December 2025

Summary

This note updates the Commons Finance Committee on the New Palace Yard (NPY) Security Project, a multi-phase programme to protect the parliamentary estate from security threats while maintaining operational access. Phase 2 is on site with forecast completion January 2026 and total project cost of £62.19m, having grown from initial estimates due to design complexity, operational continuity requirements, and over 1,800 change instructions under the fixed-price NEC3 contract.

Key findings

Project aims to reduce risks including loss of life, business continuity compromise, property damage, information security breaches, and reputational harm through physical barriers and vehicular/pedestrian screening.
Total project cost forecast at £62.19m following approval of Phase 2 Full Business Case Addendum (January 2023) at £68.5m; latest financial assessment shows programme on track.
Over 1,800 Project Manager's Instructions issued under NEC3 Option A fixed-price contract, reflecting client-driven alterations, incomplete design information, and scope gaps that caused cost escalation and programme delays.
Phase 2 works include secondary perimeter railings, security-rated guard boxes, pedestrian access control systems, vehicle 'tiger trap' barriers, upgraded detection systems and CCTV, and heritage feature reinstatement.
BDO internal audit (March 2025) provided 'moderate assurance' that the principal business objective is being achieved within agreed time, cost, and quality specifications.

Tone

Factual

Topics

parliamentary-securitycapital-projectspublic-estate-managementcontract-management

Key actors

BDO (internal auditor), BAM (main works contractor), Joint Investment Board, Clerks of the Houses, Accounting Officers, JCBA

Notable line

“Project Manager's Instructions (PMIs), reflects the cumulative impact of client -driven alterations, incomplete and evolving design information …”

Key Quotes

“The NPY Programme aims to provide access for Members, staff, and the general public while protecting those legitimately on the estate, and the building itself, from those intent on causing damage or harm.”
— New Palace Yard Project documentation · Statement of programme objectives

“The complexity, scale and size of the project surfaced during design development and the approach to the delivery of the works was explored further as it was critical to maintain access to NPY for operational use and to minimise disruption.”
— Note to Chair · Explanation for cost increases from original 2017 outline business case

“The significant number of changes under the Option A NEC3 contract, resulting in over 1,800 Project Manager's Instructions (PMIs), reflects the cumulative impact of client -driven alterations, incomplete and evolving design information …”
— Note to Chair · Analysis of reasons for cost escalation and programme changes

“We are able to provide moderate assurance that the principal business objective is being achieved.”
— BDO · Internal audit conclusion on project management effectiveness (March 2025)

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Source · parliament.uk record ↗