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Olympics will cost £8.6bn say engineers

London 2012's true construction cost will be £8.6bn, engineers polled by NCE said this week.
A survey of key industry figures combined with this week's NCE 500 reveals that on average, engineers believe Olympic bosses should hold an additional 39% of the final budget to allow for cost overruns.This contingency combined with costs to cover the delivery partner role, increased security, regeneration and VAT add up to a total construction bill almost four times the £2.4bn put forward in London's bid to host the Games.However the Treasury is pushing for a 60% contingency figure which if adopted could push the final bill up to just under £10bn.London Mayor Ken Livingstone made the issue of a programme contingency fund public last week. He said the Treasury was pushing for a 60% contingency, while the Olympic Delivery Authority (ODA) was arguing for the smaller figure of 30%. He said: 'I'm not looking for any contingency. If you have it at 60%, then everybody bidding for the contracts will know that you have a huge pot of money if they screw it up.'However, he added that he would be prepared to accept 20%.A final construction budget is expected to be published as part of the ODA's Corporate Plan in February 2007.

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