Structural damage and the discovery of asbestos at Buckingham Palace “could have been foreseen”, a report has said, after they led to cost increases in the £369m project to update the royal residence.

The renovation work on the King’s official London residence was launched in 2017 to update the plumbing, pipes, wires and heating, some of which dates back to the 1940s and 1950s.

On Tuesday, a report by the National Audit Office (NAO) – which evaluated the project’s value for money – said the programme has been “well managed” so far, but certain challenges such as asbestos and structural damage had led to a jump in cost.

The NAO said the East Wing of the palace was 78% over its estimated cost, but other projects such as the picture gallery and the roof came in 25% under the forecasted costs.

“Some of the reasons for cost increases and delays were outside the household’s control, for example COVID-19, variable inflation, and supply chain difficulties,” the report says.

“Other challenges, such as the discovery of more asbestos and structural damage than expected – common in heritage programmes – could have been foreseen.”

Detailed planning for renovations began seven years ago after some 3,000 Royal Collection items, including priceless paintings and decorative works of art, were moved to allow the work to begin.

Essential works are being funded by an uplift to the Sovereign Grant – paid annually to the monarch by the Treasury to fund official duties.

At the end of March this year, the project’s net expenditure was £238.9m – 65% of the budget – with essential works on the West Wing and main works in the North and South wings set to be completed in the last two years.

Please use Chrome browser for a more accessible video player

Keep up with all the latest news from the UK and around the world by following Sky News

The NAO warned there is limited remaining unallocated contingency – money set aside to cover uncertain costs of a project – to deal with unknown risks without reducing what is delivered.

The report said “risks remain” to the overall value for money of the programme but if it continues to manage risks effectively, it should set it up to deliver good value for money.

Read more:
Visitors can ‘almost’ re-enact Royal Family balcony moment
New Prince George image released to mark 11th birthday

Be the first to get Breaking News

Install the Sky News app for free

Gareth Davies, head of the NAO, said: “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.”

Related posts:

Vomiting bug norovirus surging as COVID-19 restrictions lift, experts warn England bowler Adil Rashid backs Azeem Rafiq’s racism allegation against Michael Vaughan Leonid meteor shower to light up skies this week – here’s when and where’s best to see it Heather Watson reaches last 16 of Wimbledon for first time in her career Housing ombudsman investigating more damp and mould complaints after Awaab Ishak inquest King’s state visit to France postponed following violent protests Welsh language blunder in emergency alert test MP cleared of bullying Nadine Dorries Man charged with murder after woman ‘killed in front of her children’ Record-breaking hydroplane to run again after fatal 1960s crash Picture agencies pull Kate photo amid ‘manipulation’ concerns Rescuers search for boy missing after swimming with friends in River Mersey