ODA鈥檚 final accounts show more than 拢200m of CLM鈥檚 payments were in performance-related bonuses

CLM payments

The 2012 Olympics private sector delivery partner was paid a total of 拢637m for its work, with more than a third of the bill comprising performance-related bonuses, the final accounts of the Olympic Delivery Authority have revealed.

The ODA鈥檚 accounts, published last week, showed that CLM - the CH2M Hill, Laing O鈥橰ourke and Mace joint venture that was appointed in 2006 as the ODA鈥檚 delivery partner - was paid a total of 拢637m through to April 2013.

Of this 拢223m 鈥 or 35% 鈥 was performance-related payments.

The total bill is 拢237m more than the 拢400m fee cited in 2007 in parliament by then culture secretary Tessa Jowell after the Olympics budget was set at 拢9.3bn.

However, last year the ODA said it expected the payment to rise to 拢650m. The ODA has previously defended the rise in CLM鈥檚 fee by saying it was largely due to the joint venture taking on extra work in 2009 to oversee the 拢1.1bn athletes village and 拢295m media centre, which were originally set to be procured by the private sector - as well as pointing to cost savings of 拢1bn across the Olympics project.

Last year 黑洞社区 revealed that CLM made a pre-tax profit of 拢162m between 2006 and 2011 on revenue of 拢495m - a 33% margin.

The ODA said the 拢637m bill was for 鈥渁lmost all鈥 of the CLM鈥檚 work, with further payments to be made in the current financial year for a 鈥渟mall amount of remaining work, and the close-out of their contract鈥.

Meanwhile, the accounts also revealed the ODA paid 拢2.8m in exit payments to 144 staff in 2012/13, including an 拢80,000 payment to chief executive Dennis Hone, who left the organisation in March before taking up the role of chief executive of the London Legacy Development Corporation.

Hone, whose total remuneration for 2012/13 was 拢422,000, also had 拢373,000 paid into his pension.

Former ODA chief executive Sir David Higgins, who was replaced by Hone in 2010, was also paid 拢105,000 in deferred performance-related bonuses.

An ODA spokesperson said the exit payments for staff, other than Hone, were limited to statutory redundancy pay, while Hone鈥檚 performance related-pay 鈥渨as far from guaranteed and was measured against tough performance criteria鈥.

She said: 鈥淲e needed to recruit and pay for the best talent from the private and public sectors, requiring people in many cases to give up secure long-term jobs elsewhere, with no certainty of [鈥 getting a job after the Games.鈥