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DOT wastes road cash

12th November 1992
Page 8
Page 8, 12th November 1992 — DOT wastes road cash
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Which of the following most accurately describes the problem?

• There is mounting evidence that the roads programme is being delayed by the Department of Transport's consistent miscalculation of the cost of new roads.

A National Audit Office report says that, although the DOT awards contracts to the lowest bidder, actual costs were 28% more than the contractors' bid prices in 1988-91; in 1990/91 alone, the extra bill was £.85m.

The report adds to roads lobby fears that money is being lost permanently from the roads programme. The British Road Federation is already campaigning for money saved when contracts are let in order to bring forward other projects in the programme.

For example, it says the project to widen the M6 in Cheshire was budgeted to cost £71m, but has been let at £52.5m. The .g19.5m saved appears to be lost and if, as the NAO suggests, the DOT ends up paying around another £13m in cost over-runs, then that, too, will be lost.


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