Construction of London’s Olympic Park and venues will now come in at just £7.25bn, more than £2bn inside the £9.3bn budget which includes contingency cash, new government figures revealed last week.
£16M decrease in costs
Figures from the Government’s July 2011 Quarterly Economic Report show that anticipated final cost (AFC) of the Olympic Delivery Authority’s (ODA’s) programme is now £7.25bn.
This is a decrease of £16M on May’s report in which the AFC stood at £7.266bn.
In total £870M in savings have been achieved by the ODA since the November 2007 baseline budget was agreed, including £33M in the last quarter.
Around £3M has been saved on transport projects because bids were more competitive than expected. Around £18M has also been saved on site logistics and security.
But extra cash had to be allocated for a range of operations including dredging works to improve waterways in and around the Olympic Park for Games-time and legacy use.
One year ahead of the opening ceremony, construction of the venues and infrastructure for the Games is 88% complete and all key venues on the Olympic Park are finished and handed over.
“The ODA and the people who have worked on the venues have done a remarkable job to deliver top quality facilities in a challenging environment imposed by a fixed deadline and strict budget,” said Olympics minister Hugh Robertson.
“Despite this they have continued to drive down costs which means we can celebrate one year to go with confidence and a real sense of excitement and expectation.”
“The Olympic Park is a great showcase for UK industry and many companies have used it to go on and win work on other projects across the world”
Olympics minister Hugh Robertson
ODA chairman John Armitt said achievements to date were testament to the strength of the British construction industry.
“The Olympic Park project is on schedule and budget and we have successfully hit all of our milestones over the last five years.
“This is thanks to the skill and professionalism of thousands of British businesses which have won contracts and shown the rest of the world what UK plc can achieve.
“The Olympic Park is a great showcase for UK industry and many companies have used it to go on and win work on other projects across the world.”