Costs Out of Control

It should come as no surprise to learn that the costs for the London 2012 Olympics are continuing to spiral out of control.

London 2012 organisers (the Olympic Delivery Authority - ODA) have admitted that the cost for the main Olympic Stadium has increased by a stonking 77%, from £280M to £496M.

John Armitt, the chairman of the ODA, admitted to the debacle in the London assembly.

Armitt then also came clean over the costs of the aquatics centre, which will double from £75M to £150M, as a result of a redesign.

The current "guesstimate" of the total costs of the Olympics is around £12BN (including £2BN running costs). However, by the time 2012 is finally upon us, it is likely in my view that these costs will have soared to around £18BN-£20BN.

Armitt attempted to explain the rise in costs away, as being not a rise at all.

Quote:

"To suggest that costs have doubled from the bid book presents a grossly misleading picture for the public. This figure is a 2012 outturn cost. It includes VAT. It includes inflation. It includes legacy conversion and it includes some site earthworks.

The bid book was a 2004 figure. It included none of these things."

Needless to say, the above explanation is pathetic. The reality being that the 2004 figure was wrong, it is as simple as that!

To try to suggest anything else, as Armitt does, is beyond reason; it demonstrates that he is not up to the job of delivering the games on time, and on budget (whatever that may be!).