The cost of Balfour Beatty’s £154m Olympic Stadium conversion job has rocketed by £36m, following complexities installing a new stadium roof.
The contract has now been revalued at £189.9m, the London Legacy Development Corporation has confirmed.
In a statement today, the LLDC said the project was a “hugely complex engineering scheme”.
It added that the installation of new roof had required “significantly more strengthening work to the main roof truss”, which was originally designed to be taken down after the Olympic Games.
The costs will be met through “project contingencies” and additional income, according to the LLDC, which said this would mean “no additional cost” to the taxpayer and no impact on the group’s current programme.
It is understood both the LLDC and Balfour Beatty are satisfied with the cost arrangement, which had to be signed off through the LLDC governance structure, and neither side expects the costs to increase again.
Balfour Beatty does not believe the negotiations have harmed the construction timetable with work continuing at the agreed schedule.
The contractor beat original stadium contractor Sir Robert McAlpine and three others to the £154m deal.
ISG, Buckingham Group and Shepherd Construction had also been in for the prestigious job.
The works are being carried out for operator E20 Stadium, a joint venture between the London Legacy Development Corporation and Newham Council.
The original deal included a £41m stadium roof contract awarded to Balfour Beatty in the summer.
A Balfour Beatty spokeswoman said: “The Olympic Stadium transformation project includes the installation of the largest single-span cantilever roof in the world.
“This is a unique two-year transformation project and a hugely complex engineering scheme, using techniques previously employed on oil rigs.
“Providing adequate support for the new roof has required significantly more strengthening work to the main roof truss, which was originally designed to be taken down after the Games.”
She added: “We continue project delivery in line with the target programme.”