Boss of contractor appointed to build tech giant鈥檚 拢650m HQ in Kings Cross says construction not expected to start until 鈥渁t least 2017鈥�, three years later than planned
Google鈥檚 proposed 拢650m UK headquarters at King Cross has been delayed by 鈥渁t least鈥� three years, the boss of the firm appointed to build the high-profile office has admitted.
Google announced last November that it had decided to scrap the design for its 拢650m HQ in King鈥檚 Cross in a move the firm said was aimed at 鈥渃halleng[ing] ourselves to do something even better鈥�.
The tech giant did not give a time frame for the review, but it is expected to take as long as two years, amid a wider review of the tech giant鈥檚 planned large-scale developments worldwide.
However, now it has emerged that Bam Construction, which won the 拢300m main contractor role on the project in March 2013, expects that construction will not now begin until 鈥渁t least 2017鈥�, three years later than the original start date of early 2014.
Architect Allford Hall Monaghan Morris has been retained to rework the design of the 750,000ft2 scheme, with cost consultant Gardiner & Theobald and engineer Waterman also continuing in their roles.
The news of the delay emerged as Bam published its accounts for the year to 31 December 2013 this week
Bam said that it was 鈥渄elighted鈥� to have been appointed as preferred bidder for the Google HQ job, but was 鈥渄isappointed鈥� that the project had now been delayed.
Writing in the accounts, Bam Construct chief executive Graham Cash said: 鈥淲e were delighted to have been selected as preferred bidder for Google鈥檚 new Headquarters in King鈥檚 Cross.
鈥淚t is disappointing - from our point of view - that the building has now been delayed to at least 2017 as Google has asked its concept architects to go back to the drawing board.鈥�
Cash said Bam was continuing to provide 鈥渟ustainability consultancy to Google, assisting them to redefine the sustainability vision for the new headquarters鈥�.
However, 黑洞社区 understands that Bam no longer considers the job as part of its pipeline and expects the project to ultimately be put back out to tender.
Google鈥檚 proposed 拢650m UK headquarters at King Cross has been delayed by 鈥渁t least鈥� three years, the boss of the firm appointed to build the high-profile office has admitted.
Bam鈥檚 profit and revenue take a tumble
Bam Construction suffered a 36% fall in profit last year, as the contractor continued to face difficult trading conditions.
Reporting its results for the year to 31 December 2013, Bam Construction posted revenue of 拢783m in the year to 31 December 2013, down 7% from 拢838m in 2012, with pre-tax profit falling 36% from 拢11.3m to 拢7.2m.
The wider Bam Construct UK group, which also comprises facilities management and property businesses, posted a 9.7% fall in revenue to 拢828m, down from 拢917m the previous year.
Group pre-tax profit dropped 22% - from 拢13.9m in 2012 to 拢10.9m - while operating profit fell 30% from 拢13m in 2012 to 拢9.1m.
The firm said its facilities management business posted revenue of 拢43.1m, up 44% on 拢30m the previous year, with an operating profit of 拢8.9m - a sharp jump on the 拢1m it posted in 2012.
The firm said it was now targeting 拢100m turnover in its FM business by 2017.
Writing in the accounts, Bam Construct chief executive Graham Cash said: 鈥�2013 was another difficult year for most in our industry.
鈥淒ue to the lengthy nature of procurement and delivery of construction and property development projects, our sector felt the effects of recession later than the rest of the economy.
鈥淪imilarly, it will take longer for us to see the benefits of the recovery.
鈥淣onetheless, I feel that Bam Construct UK has withstood the effects of four years of recession well. Our financial performance in 2013 is reasonable given the market we are in.鈥�
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