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Capital Projects (Expenditure)

Dr. David Clark : To ask the Secretary of State for Defence what are the reasons for the variations between current and original estimated expenditures on the capital projects at (a)

Minley/Chatham barracks, (b) Dishforth, accommodation for Army Air Corps, (c) Tidworth, infrastructure and tank road, and (d) Wattisham (RAF), change of role, as listed on page 19 of Command 276-1.

Mr. Hanley [holding answer 15 April 1994] : The reduction in estimated costs for the Minley/Chatham, Dishforth and Tidworth capital works projects is due to the refinement of the original estimates as the design has developed, coupled with lower than forecast project management fees. Also, competitive tendering has resulted in works contracts being let at significantly lower prices than was originally estimated. Indeed, estimates for all three projects have continued to fall and are now as follows :

Minley/Chatham Barracks--£28,467,000



In the case of the Wattisham project, the current estimated project cost is £46,150,000, which represents a reduction against the estimate shown on page 19 of Command 276-1. This still, however, represents an increase over the original project cost. That is due to the fact that financial provision for a new build of married quarters was not included in the original estimate as the requirement for domestic accommodation had not been defined at that point in time. Provision had, however, been made separately to cover overall married quarter requirements resulting from the return of forces from Germany, including the two regiments moving to Wattisham.


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