INITIAL estimates into the cost of the new V&A museum in Dundee did not fully take into account the "unique challenges" of its design, a report has found. 

John McClelland, a procurement expert and former chair of Rangers Football Club, investigated the spiralling costs of the Kengo Kuma-designed museum on the banks of the Tay. The project is now expected to cost £80 million. 

The report, which will now be considered by the city council's policy and resources committee later this month, finds that "the international benchmarking approach which formed the basis of the original project cost estimates was not sufficiently robust to address the unique challenges associated with Kengo Kuma’s iconic winning design for the V&A in Dundee."

As the detailed design process moved forward, it became "apparent that the technical requirements and construction method involved would place real pressure on the budget."

The review also concludes that more frequent and direct reporting about the V&A Dundee to councillors would have been "helpful" after the council adopted the construction element of the project in June 2011.

Mr McClelland also recommends improved record keeping and improved due diligence on the cost of major projects before formal contractual arrangements are finalised.

Councillor Ken Guild, convener of the policy and resources committee, said: “I would like to thank John McClelland for his thorough review into the V&A Museum of Design Dundee construction project and his recommendations to help us take this forward.

"This comprehensive review shows us where lessons need to be learned and I am happy to accept the recommendations.

"I am sure that these can be implemented quickly and that frequent updates can be brought before councillors.

"We are working with our partners and BAM Construction to ensure that this unique building helps boost the economy, cultural offer and confidence of our city.? Mr McClelland’s expertise has helped identify a number of issues which will help us on other capital projects as well.

"Construction of the V&A Dundee is now underway and the project is proceeding successfully."