One contractor left in Olympics tender

7 October 2007
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08 October 2007 | Antony Barton

The Olympic Delivery Authority (ODA) says engineering firm Balfour Beatty is the last contractor left in discussions to build the London 2012 Aquatics Centre.

The centre, designed by architect Zaha Hadid, will host swimming, diving, synchronised swimming, water polo finals and parts of the modern pentathlon. After the Games, temporary seating will be removed, leaving a 2,500 capacity swimming venue for the local community.

In May, the ODA selected Balfour Beatty, Eiffel and Hochtief for competitive dialogue sessions to decide the form of contract and pricing structure.

Howard Shiplee, ODA director of construction, said in a statement last week the ODA had opted for a target cost contract, such as that used for the Emirates Stadium and Heathrow Terminal 5. This is where the contractor receives a payment that is related to performance and agreed targets, with specific bonuses often built in for early completion.

Shiplee added: "In recent weeks Eiffel decided it was unable to meet this requirement for target cost and withdrew from the tender process."

Hochtief last week confirmed it had also withdrawn. In a statement, the firm said: "We are disappointed to be unable to bid to build the London Aquatics Centre. Unfortunately, after taking on substantial new work in the Middle East and Germany our company is unable to commit the specialist building resources required."

Eiffel was unable to provide with a comment.

Shiplee said he was looking forward to receiving a tender bid from Balfour Beatty, which in turn stated it was "fully committed to the tender process" and would meet the requirements of the ODA.


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