Four-fifths of council building projects have been delayed and three-fifths have gone over budget, the public spending watchdog has found.
The Accounts Commission paper, entitled Major Capital Investment in Councils, said just two-fifths of capital projects carried out by councils are completed within the original estimated budget.
It singles out the Dunfermline Flood Prevention Scheme as the worst offender of 15 projects under way. It is almost £15 million over the initial cost estimate of £9.8m with the total now standing at £24.7m, an increase of 152%.
The report adds: “The project has been problematic, with conflicts between the contractor and the council and challenges with problems faced over the design and specialist nature of the project.”
The report points out an internal deal with Fife Building Services (FBS) to renovate works at the Bankhead Depot is running with a cost estimate of £21.5m up £3.2m and estimated completion date of December 2013, 10 months more than originally planned.
It also mentions that Carnegie Sports Centre project took 11 months longer to complete than estimated at contract award.
Perth and Kinross Council’s £217.6m Investment in Learning Schools programme is singled out as the longest running PFI project in Scotland, taking eight years to complete more than five years more than the average project.
The report says 17 months was the average delay for completing a project, with the average total cost 26% higher than the initial combined estimate, an overspend of £89m.
However, the commission warned the report does not paint the full picture due to “significant gaps” in information provided.
Scottish Conservative infrastructure spokesman Alex Johnstone said: “At a time when money is so tight there is no room for inaccurate forecasts on capital projects which are inevitably going over budget and over time.”
A Perth and Kinross Council spokeswoman said there were hold-ups during the pre-contract process, caused in the main by Government funding issues, legal delays in land purchasing and delays in the consortia negotiation process that were outwith the authority’s control.
She said: “Once the contract was signed and construction got under way there were no further delays. The IIL programme represents good value for money for the local authority and local residents.”
Steve Grimmond, executive director for Fife Council’s environment, enterprise and communities department, said overspend is taken “very seriously”.
He said: “When slippage is identified in a project we will take steps to investigate the reasons and do our best to bring it back on budget.”