Holyrood consultants agree to a cut in fees

Consultants on the Holyrood Scottish Parliament project have been forced to take a cut in their multi-million pound fees.

The decision follows two hours of talks last week between presiding officer George Reid and MSPs who sit on the parliament's corporate body.

The consultants, which include the main building contractor Bovis Lend Lease, architect EMBT/RMJM and cost consultant Davis Langden and Everest, have so far earned a total of £56m from the project.

However, the parties have accepted that total fees due at the end of the project will be "capped" following last week's negotiations - based on a percentage of the final costs.

Under an existing agreement, based on building industry rules, 5% of fees are withheld until the completion of the project. The team has also agreed to reduce its fee of £6.1m for the recent £37m increase in the project's costs - now estimated at £375m.

The breakdown in extra cost includes:

n £1.7m on "logistical issues", such as cranes and scaffolding remaining on site for longer than intended.

n A further £9.5m on trade packages (including disruption and compressed working).

n £1m on delays in completing the building housing MSPs' offices.

n An extra £500,000 for damp problems at Queensberry House.

The Scottish Parliament has also bowed to public calls for an investigation into the project by appointing Lord Fraser of Carmyllie, a former Lord Advocate, to lead an inquiry into how resources have been used and managed and the overall conduct of procurement.