ODA brings in consultant to review delivery partner鈥檚 pay, after it earns 拢151m in year to March
Olympic organisers have drafted in QS firm Gleeds to review the fees paid to the consortium responsible for keeping 2012 costs under control.
The Olympic Delivery Authority (ODA) admitted it was appointing a consultant to review and assess the amount of money paid to CLM, the Olympic delivery partner that comprises CH2M Hill, Laing O鈥橰ourke and Mace. The appointment follows the publication of the ODA鈥檚 annual report in July, which led to press comment over CLM鈥檚 fees.
The consultant will work alongside Ernst & Young to check that proposed fee levels offer value for money during the 18-month period from the end of this year to July 2011.
The ODA declined to confirm that Gleeds had won the job but said it had been on a shortlist with five others, including Capita Symonds, Cyril Sweett and Currie & Brown. It added that the appointment was a routine move.
David Higgins, the chief executive of the ODA, said: 鈥淥ur contract with CLM means we have the right to review resourcing levels and review the pricing benchmarks, so that鈥檚 what we鈥檙e doing 鈥 We were always intending to review the prices in advance of the next tranche of spending.鈥
The ODA鈥檚 annual report revealed that CLM was paid 拢151m in the year to 31 March 2009, including a 拢60m bonus. The amount, which averaged out at 拢413,000 a day, was almost double the 拢87m paid to the consortium in the previous year.
Well-placed sources suggested that concerns about public perception had played a role in the appointment. One said: 鈥淭he job is for someone to come in and monitor the team. It鈥檚 essentially an audit role. There has been a lot of press speculation about CLM鈥檚 fees and the sense is this was very much in response to that.鈥
However, Higgins insisted it was standard practice to bring in consultants to vet fee agreements and said it was a 鈥渃omplete fallacy鈥 to suggest the move was linked to negative press reports.
CLM was appointed in 2006 to oversee construction of the Olympic venues and keep costs down. In April this year its remit was expanded to include overseeing the building of the athletes鈥 village, which was originally run by developer Lend Lease.
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