HC Deb 26 February 1996 vol 272 c301W
Mr. Berry

To ask the Secretary of State for Defence, pursuant to his answer of 16 February,Official Report, column 722, regarding the position of sub-contractors working on the new MOD building at Abbey Wood, Bristol, if he will make a statement on the disputes between the main construction contractor and his sub-contractors. [16961]

Mr. Arbuthnot

Commercial relationships between the main construction contractor and his sub-contractors are matters for the main contractor to deal with. However, the Department understands the normal process of settling final accounts for the sub-contractors who have completed their works continues.

Mr. Berry

To ask the Secretary of State for Defence, pursuant to his answer of 16 February,Official Report, column 722, regarding the costs of the new MOD building at Abbey Wood, Bristol, what are the estimated and budgeted costs for (a) site acquisition, (b) construction, (c) fitting out, (d) professional works management fees and (e) VAT; and if the estimated cost of construction takes account of disputed payments to the contractor. [16974]

Mr. Arbuthnot

The estimated and budgeted costs for the Abbey Wood construction project, at 1992 prices and inclusive of VAT where appropriate, are as follows:

£ million
Site acquisition and planning obligations 124.9
Construction, including fitting out 2212.6
Works project management fees 39.7
Total 247.2
1 £27.3 million at 1995 prices.
2 £235.5 million at 1995 prices.
3 £10.5 million at 1995 prices.

Elements of the fit-out works are currently subject to procurement competitions and therefore the associated costs are commercially confidential. These figures reflect the Department's estimate of the likely outturn costs for the project.

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