Turner & Townsend has been appointed project adviser for the Foster and Partners-designed scheme, but the procurement route has yet to be chosen.
Industry sources say the first decision for the DETR is whether it should sign a deal with developer CIT Markborough to provide it with only the shell-and-core, or whether it is asked to fit out the building, too. Sources say the DETR appears to favour Markborough developing both shell-and-core and fit-out works, but that this could lead to dramatic overruns once the project is on site.
The fear is that the mayor, once elected, will reject the DETR's fit-out, leading to huge variations in the already agreed development costs. The added complication is that the DETR has little idea of what a London mayor's building might need, and so is in no position to agree a deal now, say sources.
The shell-and-core cost is estimated at £20m, and there is speculation that the price tag for the fit-out will begin at £12m, and may rise as high as £20m.
Turner & Townsend director Andrew Duncan confirmed that two options are under consideration, but denied that either route was favoured at this stage. He said that each route has its pros and cons. One advantage in getting the developer to provide the shell-and-core and to fit out the building is that all the work would be limited to one team.
With Fosters and Partners and its engineer Ove Arup & Partners working throughout the project's life, there would be no complicated interfaces to manage, eliminating one serious risk to its budget. He said a decision on the exact procurement route could be some way away, and that mechanisms to allow later changes to the mayor's brief could be built into the deal with the developer.
However, other sources argued that it would be difficult to control fit-out costs if one team ran both elements.
"If they do use Foster and the shell-and-core team for the fit-out, they may be tempted to extend the glory of the building to every other part of the job," one said.
It was even suggested that combining the two stages would make it easier for officials to conceal expensive fit-out items.
