Badenoch said her party would oppose the current proposals if they are voted on by MPs and peers.
Badenoch’s party said the scale, scope and governance of the plans raised “serious concerns about value for money”.
The Conservatives said cost estimates had “risen dramatically over time, with completion potentially stretching across multiple decades”.
Warning of a “mission creep”, the Conservatives said what began as “a safety-led programme risks expanding into a wholesale transformation of the parliamentary estate, including extensive additional works beyond core structural remediation”.
The party has launched a public petition calling for a “fundamental rethink” of the current plans.
The Conservatives said the project should be refocused on “essential safety and structural works” and called for “stronger external oversight and transparent reporting to Parliament”.
“Parliament’s restoration project is out of control, and the public should be as angry about it as I am,” Badenoch said.
“This was meant to be essential works to keep a cherished, historic building safe and functioning. It has turned into a basket case white elephant project.”
She said taxpayers were “being asked to bankroll billions more to turn the Palace of Westminster into a Net-Zero Dubai hotel”, referring to plans to improve the building’s energy efficiency.
A UK Parliament spokesperson said the costed proposals have been put forward “to secure the future of the historic Palace of Westminster”.
The spokesperson added: “The plans focus on priorities such as the replacement and upgrade of systems including power, water, and the 1950s heating, critical improvements to fire safety, the controlled management of asbestos, and repairing damaged stonework. 
“The restoration proposals are expected to be scrutinised, considered and debated by all members of both houses to decide a way forward.”