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ODA reveals 2012 procurement plans

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OLYMPIC BOSSES this week unveiled procurement plans to ensure that the London 2012 construction avoids spiralling costs and late delivery.

The Olympic Delivery Authority (ODA) published a detailed description of the contract to programme manage construction of London's Olympic Park.

It shows that the programme manager, to be known as ODA's delivery partner, will be paid on a cost reimbursement basis for the works and services it procures.

'The reward structure for the successful delivery partner will relate to both performance and the management of risk on the project, ' explained ODA chief executive David Higgins.

'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 extent to which the programme manager will be rewarded for minimising risk and meeting performance indicators will be negotiated at the shortlist stage.

The ODA expects over 60 companies to bid for the contract, with the majority bidding as consortiums.

Those already declaring interest include Balfour Beatty/Amec, Parsons Brinckerhoff, Bechtel, Capita Symonds/KBR/Franklin & Andrews, Arup/Gardiner & Theobald, Mace/Davis Langdon and Lend Lease Projects.

The deadline for bids is 25 April.

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