This is taken from The Guardian:

NAO launches inquiry into BBC building work

David Hencke, Westminster correspondent
Wednesday February 22, 2006

The National Audit Office is holding an inquiry into the spending of over £800m of licence payers' money on the redevelopment of the BBC's flagship headquarters at Broadcasting House - only a week after a damning report which castigated the corporation for the way it added £60m to fitting out new buildings at White City.

Alan Williams, the Labour MP for Swansea West and deputy chairman of the powerful Commons public accounts committee, has asked Sir John Bourn, the comptroller and auditor general, for a short report on the BBC management's handling of the work - which has been bedevilled by delays and will now not be occupied until 2010.

The NAO said it had prepared a report and was sending it to the MP.

The BBC has spent around £190m refurbishing the listed building, the original home of BBC Radio, including new studios. They have also restored Lord Reith's orginal office and council chamber to its original art deco glory.

Mark Thompson, the director general, is expected to move back to Broadcasting House from White City. But the building has been completed nine months behind schedule, triggering penalty clauses against the BBC's agent, Land Securities, which is in charge of the design-and-build project.

The cost of the first phase of the scheme has also overrun by £20m. The BBC said tonight that some £7m had been spent on extra security arrangements following 9/11 to protect staff and another £13m has been spent on refurbishing a nearby building, Western House, the headquarters for BBC Radio 2.

The corporation is also planning to spend some £400m on fitting out the new broadcasting centre with some of the most up-to-date technical equipment.

A BBC spokesman said tonight: "We are holding amicable discussions with Bovis and Land Securities on how to proceed. Basically we have to stick to a £800m budget so we will have to make changes to the next phase."

Bovis also confirmed that it was holding discussions with the BBC and Land Securities about the next phase. Work has been delayed on the project while these are completed.

BBC staff, who face losing 4,000 jobs plus further moves from London to Manchester, are critical of the amount of money being spent on new buildings, while the National Union of Journalists has attacked the corporation for wasting cash on the developments.