London Olympic village cost increase after supplier insolvencies

The latest report from the London Olympic Delivery Authority (ODA) has revealed an increased of AUD$9.6 million on the village construction due supplier insolvency.

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 $11.6 billion.

This includes a like-for-like increase in the ODA’s spend of $19 million, plus additional funding for park operations of $91 million, which were included in the spending estimates for the first time. The overall increase in the quarter to December 2010 was $110 million, the ODA said.

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