£1million (From Free Press Series)

£1million

TORFAEN council admitted that a catalogue of management errors pushed a state-of-the-art learning centre nearly £1million over budget.

Work on the Power Station - an innovative building designed to empower the community - started in 2004 and was originally expected to cost £1.8million.

Costs on the Cwmbran construction soared from the initial projected cost of £1.8million to £2.2million and then reached a peak in October last year of £2,750,000.

The extent of the overspend remained undetected for at least two years. Blame for the overspend centres around a lack of budgetary control, failure to agree a final design and the lack of a feasibility study.

A report to the Education and Young People scrutiny committee stated: "It's readily apparent that project management arrangements associated with the Power Station have not been adequate. Roles and responsibilities have not been clearly defined."

The report admitted to "weak" project management stating the "lines of responsibility and accountability were unclear and undefined," and that "a full feasibility study should have been undertaken."

Funding bids weren't based on agreed final designs and as the design was altered, resulting differences in the final cost were not taken into account. Contractors Cowlins even raised concerns that expectations for the building were outweighing their £1.8million budget.

Costs rose when more extensive ground works were needed, and the steel frame reached a £250,000 price tag - £165,000 more than the projected £85,000.

Once completed it is hoped the three-storey building with both thermal and solar power will become one of the most eco-friendly buildings in Wales.

And in order to adhere to contractual obligations the scrutiny committee recommended the council approve giving £600,000 to the Power Station from the capital programme.

Councillor John Turner, executive member for education said: "The Overview and Scrutiny Committee agreed that the Power Station is a much needed facility in south west Cwmbran.

"They made some recommendations which will be taken to the Cabinet to approve. They include setting up a board, which will be given regular updates and reports, to closely monitor the Council's large capital projects."

Catalogue Of Errors

Early 2002: Torfaen council's education department's submitted bid for £750,000 to the Assembly

In May 2002, the Assembly suggested more detailed costings were required and urged the council to obtain more realistic construction time-scale

In February 2003, a revised bid for £1million was put to the Assembly

May 2003: £1million grant was secured from Local Regeneration Non-match Fund and a further £800,000 was secured from RISE Learning Network

July 2004: still no final cost plan and the design had not been finalised

September 2004: work started on The Power Station - still no agreed final design and no accurate contract sum for the project

March 31 2005: Deadline - spend £1million WAG grant, or it would be forfeited

August 2005: overall cost of the project had risen to £2.75million