Today’s report, The Senedd, examined whether the Assembly Government had managed the procurement well after the project had restarted. The first phase, from 1997 to 2001, was beset with well-publicised problems - involving rising costs and time delays. These increases were the main reason behind the Assembly Government’s decision to terminate the employment of the architect - the Richard Rogers Partnership. The first phase of the project has previously been examined in two Auditor General for Wales reports.

The second phase of the project was launched in 2002 - with a deadline of August 2005. However, the new Senedd building was completed in February 2006, some six months later than planned. This was mainly due to ICT problems, such as delays in developing the detailed specification that was needed, and the fact that Merlin, the Assembly’s new ICT system, was being procured at the same time.

The Assembly Government learned lessons from the first phase and from other major public construction projects - such as the Scottish Parliament building and City Hall in London. It took time to plan a way forward and, on the advice of property and construction experts, the Assembly Government adopted a fixed price design and build procurement route. It selected a Taylor Woodrow-led consortium (which included the Richard Rogers Partnership) to construct the Senedd. The Assembly Government also introduced a new project management and governance structure.

The report makes a number of recommendations for future procurement and building projects. These include:

• the Assembly Government should, in major procurements of this kind, make the specification sufficiently detailed – in terms of integrated systems, facilities and space requirements – to mitigate the potential for further changes and delay post contract;
• the Assembly Government should formalise the lessons learnt and incorporate them into the operational procedures of the organisation; and
• the Assembly Commission should continue to monitor and produce regular reports on the performance of the building to ensure that the building continues to meet environmental and sustainability standards.

The Auditor General, Jeremy Colman, said today:
“This is a success story.  The second phase of the project to build the Senedd clearly benefited from lessons learned in the first. New processes, tighter financial forecasting and better project management resulted in the successful delivery of the National Assembly’s Cardiff headquarters. I hope my recommendations will ensure that these important lessons will influence future similar projects.”

Notes to Editors:

• This report examines whether the Assembly Government had managed the procurement of the Senedd building well after the project had restarted in 2002.
• The report covers the second phase of the project, from when the Welsh Assembly Government restarted the project, with revised arrangements for managing the project and a different procurement route, through to the opening of the building in 2006.
• The first phase of the project has been subject to two reports by the Auditor General for Wales: Accommodation Arrangements for the National Assembly for Wales, November 2000 and The National Assembly’s New Building: Update Report, November 2002. 
• The Wales Audit Office is independent of government and is responsible for the annual audit of some £19 billion of annual public expenditure. Its mission is to promote improvement so that people in Wales benefit from well-managed public services that offer the best possible value for money. It is also committed to identifying and spreading good practice.
• The Wales Audit Office was created on 1 April 2005 following the passing of the Public Audit (Wales) Act 2004, which expanded the functions of the Auditor General for Wales and enabled the transfer of staff from the Audit Commission in Wales and National Audit Office in Wales to his employment.