26.02.18
Phasing issues put Crossrail construction £190m over expected cost
Construction costs on the Crossrail programme have come in 20% over the planned costs, amounting to around £190m of extra spending on the year to date.
The difference in cost has been attributed in part to the phasing of certain works, with construction on certain sections of the line completed in periods which were not initially planned.
TfL bosses revealed the issue in the latest board papers for their Finance Committee, which labelled delays at Whitechapel and Farringdon stations as factors which had driven up costs in the last year.
In addition, the capital’s transport body said it had been required to make system-wide changes in design and employ new high-level staff, causing an added rise in expenditure.
But Crossrail officials defended the extra spending, explaining that coming in over cost for this particular year would not push the project past its £14.8bn total budget.
This was confirmed by TfL in its report: “Crossrail construction costs are £190m (20%) ahead of budget, but the Elizabeth Line is still forecast to be delivered within its overall funding.
“Period variances are expected as the budget contains a number of assumptions about the timing and scope of work.”
A spokesperson for Crossrail told RTM that the numbers for expected costs were based on a business plan completed by the company in September 2016.
“The Elizabeth Line is being delivered within its available funding,” they added.
“The TfL finance report refers to Crossrail’s actual expenditure compared to forecast expenditure as estimated in the Crossrail Business Plan. Variances are expected as the business plan contains a number of forecast assumptions dating from September 2016, such as the timing and scope of work to be delivered in 2017-18.”
Both Woolwich and Bond Street stations have also come in behind scheduled opening times, with the £300m Bond Street revamp opening in November last year.
RTM reported in January that the Elizabeth Line could be under some time pressure after electrical testing works scheduled for November had been pushed back due to an explosion.
A voltage transformer meant to connect some of TfL’s equipment with Network Rail’s failed and exploded, meaning the testing – which was necessary to begin energisation on some sections of the line – could not be completed.
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