US Army takes over hospital construction after $1bn overspend

Construction management of a hospital in Denver is being handed over to the US Army Corps of Engineers as the project has run over budget by US$1bn (£670m).

The Department of Veteran Affairs (VA) will be investigating how the overspend arose at the new Denver veterans hospital.

The aim is that the hospital will open in 2017 following estimated spending of another US$830m to complete the work. Cost of the hospital is now put at US$1.73bn. It had been due to open next month at a cost of US$630m.

US Representative Mike Coffman has criticised VA for failing to discipline any officials over the billion-dollar cost overrun. Coffman has filed legislation that calls for a spending cap and introduces measures including prohibition of any VA bonuses until the hospital is complete. He also calls for VA to be stripped of any future major construction authority and for an independent investigation into the billion-dollar cost overruns at the hospital.