08 March 2006 | Rebecca Ellinor
The major project management contract for the London 2012 Olympics will centre on rewarding delivery rather than imposing penalties.
According to the interim Olympic Delivery Authority (ODA), terms of the agreement for the successful bidder will address risk management and performance to reflect the fixed deadline of the project.
This will include leading on design, construction, commissioning, procurement, scheduling and cost management for the ODA and managing the supply chain on the ODA's behalf.
Only companies with a turnover of £100 million or a consortium where each partner has a turnover of £50 million are eligible to apply. So far, more than 60 companies have expressed interest in becoming the "Olympic delivery partner", including some of the biggest global names in construction.
David Higgins, ODA chief executive-designate, said in a statement: "This is the big contract for 2006 and critical to the overall success of the project. The response has exceeded all expectations and there is a heavyweight list as we move forward to the next stage of the process.
"The reward structure for the successful delivery partner will relate to both performance and the management of risk on the project. This is different to many contracts which focus solely on penalising failure. But there can be no flexibility on the end date as there is an immovable deadline for delivering the project."
The ODA said this is the first time this process has been used to procure a contract in the UK and allows more negotiation between the ODA and a shortlist of bidders than under other procurement processes.
Companies need to register formally to participate by 25 April. This new process means shortlisted companies will play a part in developing the tender documents.