The U.S. Department of Veterans Affairs has been managing 50 major medical center construction projects across the country, and four of those projects have encountered schedule delays and cost increases of about $1.5 billion, according to a report from the Government Accountability Office.
The most highly publicized project involves the VA medical center in Denver. The VA initially pegged the reconstruction costs at $328 million, but as of November 2012, the costs were $800 million. In addition, the completion date had been pushed back more than a year, from February 2014 to May 2015. The VA's primary contractor in Denver expects the project will likely cost even more and won't be complete by May 2015, according to the GAO.
Many of the cost overruns at the Denver facility were due to a change in facility plans and unanticipated events, like removing asbestos and replacing bad electrical systems.
According to the GAO, the VA has been making necessary changes and implementing GAO recommendations, such as developing guidance on the use of medical equipment planners.
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