HC Deb 17 December 1968 vol 775 cc1151-2
16. Mr. Murton

asked the Minister of Housing and Local Government whether he will make a statement about the recent £7½ million project by Southwark Council's Direct Labour Department.

Mr. MacColl

This scheme for about 1,400 dwellings was approved in 1966 on the basis that a separate management team should be employed, as advised by the National Building Agency. This team was set up, with the assistance of management consultants. I understand that work proceeded well to start with, but the month-to-month cost control revealed early this year that costs were beginning to exceed estimates; progress was also falling behind schedule. The council has now decided to bring in Messrs. Bovis Ltd. on a fee basis to manage the remainder of the work for it. Messrs. Bovis estimates that the cost will exceed the original estimate by about 13 per cent.

Mr. Murton

In view of the fact that excess costs are already in the nature of £400,000 and that the consultants' fee is £20,000, will the Minister confirm or deny that further excessive cost, in excess of £150,000, are very likely to take place?

Mr. MacColl

I think it too early to reach a final figure on what the increase will be.