黑洞社区

The 2012 Olympics private sector delivery partner is expected to be paid 拢650m for its work - over 60% more than MPs were told when the overall budget for the Games was finalised.

Olympic Delivery Authority (ODA) chief executive Dennis Hone told 黑洞社区 that the 拢650m figure was the estimated final fee cost for CLM - the CH2M Hill, Laing O鈥橰ourke and Mace joint venture that was appointed in 2006.

This is 拢250m more than the 拢400m fee cited in 2007 in parliament by Tessa Jowell, the then culture secretary, after the overall budget for the Olympics was set at 拢9.3bn.

CLM, whose main duties include cost management, has been paid 拢607m by the ODA to date, including 拢214m in accrued performance-related payments, the latest of which will be paid
in future years if projected targets are met.

Labour MP Margaret Hodge, chair of the Public Accounts Committee, said she would quiz ODA bosses on the figures after the Games. 鈥淭he ODA has done a brilliant job in delivering the venues and infrastructure for the Games, but this enormous increase in fees is extremely worrying,鈥� she said.

鈥淢y committee intends to carry out a 鈥榩ostmortem鈥� once the Olympics are over, and this is certainly something we will want to look at. The ODA, like the other bodies involved, must be held to account for whether it has delivered value for money.鈥�

Hone defended the rise in CLM鈥檚 fees, saying it was largely to do with it taking on additional work in 2009 to oversee the 拢1.1bn athletes鈥� village and 拢295m media centre, originally set to be procured by the private sector. 鈥淭he ODA is spending about 拢7bn, so it鈥檚 about 10% and we鈥檝e benchmarked this. For a project of this complexity 鈥� we think this is reasonable,鈥� he said.

He added that the ODA was also doing 鈥渁 lot of facilities management work鈥� for the London Organising Committee of the Olympic and Paralympic Games (Locog), which was 鈥渁dditional scope for CLM鈥�. An ODA spokesman added that CLM had been 鈥渋ntegral鈥� in generating savings of more than 拢1bn. 鈥淲hen you consider the sum earned by CLM to date against the backdrop of a project successfully delivered to an immovable deadline, we are certain the taxpayer has got value for money,鈥� he said.

The spokesman added that the 拢400m figure quoted by Jowell did not include VAT, whereas this is included in the 拢607m and 拢650m figures. However, the 拢400m figure was announced after it was agreed that VAT would be levied on the Games.