To ask the Secretary of State for Justice, how much and what proportion of the increased cost of £116 million in the build for the new prison at Glen Parva is as a result of (a) inflation and (b) additional ground works; what additional works were required to be carried out; and for what reason the additional work was not identified when initial feasibility works and surveying and engineering assessment works were carried out.
The initial cost estimate for the previous Glen Parva project was based on an earlier design and reflected different assumptions than the current project; it was not a contract price and is therefore not directly comparable to the contract price for the current project. The previous project was part of a programme of six new prisons within the Prison Estate Transformation Programme. After that programme was reduced in scope in 2019, the project moved to being delivered on a standalone basis.
The project is currently delivering on time and on budget. The current budget reflects cost changes since the previous scheme and moving from an initial cost estimate to a contract price. Inflation has resulted in a £12m cost increase and, as initial cost estimates were carried out prior to detailed site surveys, site conditions have resulted in an increase of £8m. Other factors contributing to the increased cost include diseconomies of scale, changes in the construction market, and changes in scope and design to support the sustainability agenda, and to drive better outcomes and value for the taxpayer.