There was a spate of escalating Olympic budget stories last month.

Among them The Sunday Times claimed the budget had ballooned to £5.1bn, while Construction News reported that Sir Robert McAlpine had put in a price of £630m for the Olympic stadium, £230m more than the Olympic Delivery Authority had budgeted for. ODA refused to comment on the stadium’s cost, saying that negotiations were still under way, but it’s likely the higher sum also includes infrastructure costs.

For the record, here’s the official line from the Department of Culture, Media and Sport:

  • 2003 bid budget £2.375bn
£1.5bn from the national lottery, £625m from council tax rises, £250m from the London Development Agency

  • Regeneration of East End £1.044bn
This ‘would have been spent eventually anyway’

  • Additional budget £900m
Announced in November to cover greater-than-expected rises in construction and commodities costs, additional funding needed to build the Olympic Village and Media Centre, additional security costs and paying for delivery partner CLM.
  • Extra budget £?
The government is currently deciding this figure, but it will include a sum for contingencies; possibly VAT, although the Olympics may be exempt; and additional security for London beyond the Olympic Park.

  • Cost of running the games £2bn
This will be paid for by ticket sales, sponsorship and television deals.

Source

Construction Manager