Audit Office report highlights serious shortcomings
The Audit Office has identified serious delays and significant cost overruns in the three largest building projects of the University of Cyprus, according to Special Report EE-EY 03/2026, released on Tuesday.
The report, based on on-site audits carried out in April and September 2025, documents extensive weaknesses in contract management, multi-year schedule deviations, and financial overruns amounting to tens of millions of euros.
Engineering School project delayed by six years
The Engineering School project began in January 2016 with an estimated duration of 40 months and an initial budget of €55.1 million plus VAT. The project reached completion in June 2025, after 112 months, marking a delay of 72 months, or six years.
Of this delay, authorities approved 58 months as justified extensions, while the remaining 14 months resulted in penalty clauses totalling €1.63 million for unjustified delays. The final estimated cost rose to €68.7 million plus VAT, an increase of around 25% compared with the original contract.
The report also notes that partial handovers, approved retrospectively despite not being provided for in the contract, failed to meet timelines. The final section was delivered with delays of up to 8.2 months.
Biological Sciences building records unjustified delays
Construction of the Biological Sciences Building began in June 2020 with a contractual duration of 36 months and an expected completion date of May 2023. By September 2025, auditors recorded an unjustified delay of five months, leading to penalty clauses of €1.5 million.
Approved variations and claims increased the project cost by €1.25 million. The Audit Office identified delays of up to eight months in forwarding change requests to the competent committees (TEAA and KEAA). Partial handover of shared teaching spaces occurred 26 days late, while work on the main building remained ongoing.
Medical School project also exceeds schedule and budget
The Medical School project started in January 2022 with a planned duration of 36 months and a scheduled completion date of January 2025. Auditors recorded an unjustified delay of four months, resulting in penalty clauses of €196,000 and a cost increase of approximately €350,000.
The report attributes part of the delay to the accumulation of demanding works toward the end of the approved schedule, as well as delays in submitting revised work programmes.
Common issues across all three projects
Overall, all three projects showed unjustified delays ranging from 11% to 35% of their original contractual duration. Approved extensions reached as high as 145% in the case of the Engineering School. Cost increases ranged from 5% to 25% per project, while total delay penalties exceeded €3.3 million.
The Audit Office identified recurring problems, including delays in issuing instructions and approvals, poor cooperation and communication between the university, consultants, and contractors, design errors, and the practice of pushing complex works toward the end of project schedules.
Audit Office issues strong recommendations
Among its recommendations to the University of Cyprus, the Audit Office calls for stricter monitoring of project timelines, early warnings and timely imposition of penalty clauses for unjustified delays, avoidance of work accumulation at later stages, faster processing of change requests by competent bodies, and consideration of decisive measures, including possible contract termination, when contractor performance remains inadequate.
The report stresses that the identified weaknesses undermine sound administration and the protection of the public interest. It also notes that academic accommodation needs remain covered through owned or rented buildings, with rental costs for the Engineering School alone reaching €1.88 million between 2016 and 2025.
Also read: Audit Service reports HFC banking system failure, €3.55M loss
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