Palace of Westminster revamp expected to cost £7.1bn

Renovation works on the Houses of Parliament

It’s been over a year since we last reviewed the extensive renovation works taking place at the Palace of Westminster, which can be read here.

The previous now modest looking figure of £1bn sent alarm bells ringing, however according to an independent report, works could now cost an eye-watering £5.7bn, with some experts warning the cost could even spiral as high as £7.1bn over the duration of 32 years.

As renovation insurance experts, experience tells us that the majority of renovation works tend to overrun, and we can only expect this to be the case with a project as colossal as this.

The cheapest option would involve parliamentarians leaving the building entirely for six years at an estimated cost of £3.5bn, with a partial move out costing £3.9bn.

With Members and Peers set to discuss the issue next year, the report’s summary suggests that whilst it does not seek to advise Parliamentary authorities which option to choose, it concludes that “a full move out is described by providing the best opportunity to mitigate risks, but the report recognises this would create logistical challenges”.

Under all scenarios work would be unlikely to start before 2020. Enough time to find suitable renovation insurance cover perhaps?