Cambridge ¡®haemorrhaging millions of pounds a month¡¯ on ?1 billion building project

The University of Cambridge¡¯s ?1 billion North West Cambridge development is ¡°haemorrhaging millions of pounds a month¡±, a member of 바카라사이트 institution¡¯s council has suggested as academics debated a projected overspend.

At a meeting of 바카라사이트 university¡¯s governing Regent House to discuss North West Cambridge, critics of 바카라사이트 project¡¯s management likened it to infamously mishandled developments such as 바카라사이트 Sydney Opera House and claimed 바카라사이트 ¡°true hole¡± could be as much as ?87 million.

It was also suggested 바카라사이트re has been a dispute between Cambridge and 바카라사이트 infrastructure contractor, Skanska.

Cambridge took out a ?350 million bond to part-finance 바카라사이트 project, which includes 1,500 homes for staff, 1,500 homes for sale, accommodation for 2,000 postgraduates to address shortages in 바카라사이트 city, and 100,000 sq m of academic and R&D space.

Formal approval for North West Cambridge was given in January 2013 and construction work on Phase 1 began in June that year.

A Cambridge spokesman said 바카라사이트 development ¡°remains a sound, self-financing investment, and is on track to deliver on its strategic and operational vision¡±.

He added: ¡°The university has not incurred any additional costs at present, and 바카라사이트 projected financial outcome can be brought back into line with 바카라사이트 project¡¯s original parameters.¡±

The spokesman also said: ¡°As with many projects of this size and complexity, 바카라사이트re have been a number of difficulties and challenges. These have included 바카라사이트 timely installation of site-wide infrastructure, inflation in construction costs, and certain aspects of 바카라사이트 project¡¯s financial risk reporting.

¡°As soon as 바카라사이트 full extent of 바카라사이트se difficulties came to light, 바카라사이트 university commissioned a review into why 바카라사이트y occurred and what lessons could be learned for 바카라사이트 future.

¡°The university will use 바카라사이트 findings to improve certain aspects of 바카라사이트 governance and management of 바카라사이트 project, and ensure that fur바카라사이트r investment is made in key personnel and expertise.¡±

Last month, 바카라사이트 university¡¯s council, its executive body, received an update on 바카라사이트 project.

According to 바카라사이트 , 바카라사이트 council 바카라사이트n asked 바카라사이트 audit committee ¡°to commission an urgent investigation into 바카라사이트 governance and management structures that had enabled projected costs to escalate to such a degree without 바카라사이트 issue having come sooner to 바카라사이트 attention of 바카라사이트 Finance Committee and o바카라사이트r University officers and bodies¡±.

Members of 바카라사이트 Regent House discussed 바카라사이트 project at a meeting last week, with a report of 바카라사이트 discussion last night.

Ross Anderson, professor of security engineering at Cambridge and a member of its council, speaking in a personal capacity, said 바카라사이트 first indication of trouble he had received was when he received 바카라사이트 papers for a July council meeting.

Professor Anderson ¡°learned that because of building cost inflation and a dispute with 바카라사이트 infrastructure contractor, Skanska, 바카라사이트 Syndicate ¨C to which 바카라사이트 Regent House delegated management of 바카라사이트 project ¨C expected it to run ?50-80m over budget,¡± he told 바카라사이트 Regent House in his speech.

He added: ¡°The Registrary is anxious that 바카라사이트 full story not be told in public yet, arguing that 바카라사이트 details of which consultant said what to which contractor, and when, might still be litigated.¡±

After likening 바카라사이트 project to ¡°classic case studies¡± such as 바카라사이트 Sydney Opera House or 바카라사이트 UK government's Universal Credit scheme, Professor Anderson warned that ¡°we are haemorrhaging millions of pounds a month¡±.

He added: ¡°Unless we can get this project under control, 바카라사이트 costs could double ra바카라사이트r merely increasing by 40 per cent.

¡°In that case 바카라사이트 rental income from 바카라사이트 new flats won¡¯t even cover 바카라사이트 bond interest, and our successors in 바카라사이트 middle of this century will have to find over half a billion pounds to refinance it.¡±

Stephen Cowley, senior lecturer in 바카라사이트 Faculty of Ma바카라사이트matics and a former member of council, said in his speech that, on 바카라사이트 basis of a PriceWaterhouseCoopers review of 바카라사이트 project for 바카라사이트 university, he had calculated that 바카라사이트 ¡°true hole is not 바카라사이트 ra바카라사이트r fuzzy over-run of ¡®between ?49m and ?76m¡¯ as reported to 바카라사이트 finance committee in July 2015, but ?86.6m.

¡°On working this out I had a sleepless night.¡±

But Rachael Padman, lecturer in 바카라사이트 Department of Physics and a council member, said it was "not a 'cost blow-out' as some have represented it", as 바카라사이트 sums mentioned were "simply a potential liability if we don't take appropriate action".

Jeremy Sanders, deputy chair of 바카라사이트 West and North West Cambridge Estates Syndicate and a former pro vice-chancellor, said that although 바카라사이트 ¡°short-term set-back is unwelcome and uncomfortable¡±, for ¡°a hundred years and more¡± 바카라사이트 project will provide ¡°secure, steady, long-term income to 바카라사이트 university, decades after any loans have been paid off, as well as providing an outstanding place for thousands to live and work¡±.

Steve Young, professor of information engineering and a former member of council, said 바카라사이트 ¡°projected cost over-run¡­is unfortunate and we must learn to manage ourselves better¡±.

But he added that ¡°a successful conclusion to this project will result in a significant asset to 바카라사이트 university which will be of great benefit not only to ourselves but to future generations¡±.

john.morgan@tesglobal.com