A-star report for Buckingham Palace refurb managers

The publicly-funded Buckingham Palace Reservicing programme, which began in 2017, is putting in new plumbing and wiring to reduce the risk of fire and flood, alongside improving public access and environmental sustainability.

Contractors are replacing 3.5 km of electric cabling as well as heating systems, lifts and lavatories. They are due to finish in 2027. The Royal Household estimates that 82% of operational improvements, which include an accessible entrance ramp, are now complete.

The programme is run by the Master of the Household, Vice Admiral Sir Tony Johnstone-Burt, who has been in post since 2015 as the business case was developed. He leads an in-house programme management office, alongside an operations team.

The overall programme remains within budget, the National Audit Office (NAO) reports*. Some individual projects have increased in cost and have taken longer to complete than expected. For example, the East Wing was completed more than two years later than planned, and at March 2024 was 78% over its estimated cost. Other projects have come in under budget, such as the Picture Gallery and roof being 25% under its forecast cost.

Some of the reasons for cost increases and delays were outside the Household’s control, including covid-19, inflation and supply chain difficulties. Other challenges, such as the discovery of more asbestos and structural damage than expected – common in heritage programmes – could have been foreseen, the NAO says.

The Household regularly reviewed and revised its plans where appropriate, for example bringing work forward during the pandemic. As cost estimates and complexity increased, it decided not to proceed with a planned visitor centre, as it could achieve the intended engagement by other means, including allowing visiting pupils to have lessons in the State Rooms.

The programme’s timeline and delivery strategy were reset three times. This was made possible by the Household’s phased approach, which allowed it to better manage risks and uncertainty and apply lessons learned as the programme progressed. Resets have also revised the works schedule and sequencing to manage funding. The programme has benefitted from a culture of collaboration and continuous improvement, including the implementation of recommendations arising from external scrutiny.

There are risks for the Household to manage as project approaches its final stages, the NAO’s report says. More than a quarter (£100m) of the programme’s budget will be received in the last two years, including for works to the North, South and West Wings. Concurrent works increase supply chain and management capacity risks. Furthermore, key staff may leave as the project comes to an end. There is limited unallocated contingency left in the budget to deal with unknown risks without reducing what is delivered.

The NAO recommends that the Household reviews management capacity and capability to ensure it has the right people in place to the end of the programme. The Household should conduct a full evaluation between five and 10 years after the programme ends to assess the value delivered, including the benefits for wider society and how the project can inform similar investments across the Royal Estate.

Gareth Davies, head of the NAO, said: “Updating decades-old plumbing, heating and electrics, as well as adding new lifts and lavatories in one of the UK’s most famous buildings is a significant undertaking, which has been well-handled to date.

“Sound planning and project management has enabled the programme to remain within budget to date and respond well to challenges such as the pandemic.

“The Household worked hard to engage stakeholders and the Palace has remained operational throughout. There are plenty of important lessons here for heritage projects and those taking place in a live environment.

“While risks remain as the programme draws to a close, if these continue to be managed effectively the result should represent good value for money.”

* The NAO report, Progress on the Buckingham Palace Reservicing programme, is available at www.nao.org.uk

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