Olympic costs increase after supplier administrations

17 February 2011
Procurement begins on Olympic stadium
Olympics chief calls for the 'brightest and best'
Olympic Delivery Authority pledges to save £27 million
ODA denies 'gagging' suppliers
Olympics on track

17 February 2011 | Lindsay Clark

Support for struggling suppliers has increased the cost of constructing the Olympic village for the London 2012 games.

The latest budget statement from the Olympic Delivery Authority reveals an increase of £6 million on the village construction “due in part to supplier insolvencies on that part of the programme”.

An ODA spokesman said for example that Trent Concrete, which went into administration in September last year, was supplying concrete panels to two of the 11 residential blocks. While some of the panels were already on site, the ODA worked with administrators KPMG to “arrange the manufacture of any remaining panels.”

“We are confident that overall construction progress on the village will not be affected,” he added.

Meanwhile, the ODA also stepped in to help the bathroom supplier to three of the blocks,EJ Badekabiner, which also entered administration last year. It has since been bought by building and engineering firm Galliford Try.

The ODA anticipates that the final cost of the Olympic building programme will be £7.3 billion. This includes a like-for-like increase in the ODA’s spend of £12 million, plus additional funding for park operations of £57 million, which were included in the spending estimates for the first time. The overall increase in the quarter to December 2010 was £69 million, the ODA said.

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