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Vinci and Carillion projects hit by delays and budget issues

Two Gatwick Airport projects being delivered separately by Vinci and Carillion have been hit by “project delays and commercial challenge”.

The projects are Vinci’s £184m transformation of Pier 1 in the South Terminal and Carillion’s £75m reconfiguration of Pier 5, both awarded in 2012.

Gatwick’s 2014 Capital Investment Programme, published in October, said the projects had been “subject to project delays and commercial challenge” leading to increased costs in the five-year funding period from June 2014.

It said Vinci’s transformation of Pier 1 to deliver a new baggage system, gate rooms and aircraft stands was affected by “time slippage due to delayed closure of Pier 1 for contractual reasons” and “adverse weather conditions”.

The new building, which was due to open in summer 2015, is now due to be completed in December 2015.

The cost of the project from June 2014 to completion is now expected to be £3.2m more than was estimated in June 2013, according to the latest CIP.

In a statement, a Gatwick Airport said the budget for the project had increased due to “the business deciding to transfer scope from other programmes into the Pier 1 project”.

It said the budget increase did not relate to a cost overrun and that the complete project remained “on track to deliver at or under the approved budget”.

“Gatwick Airport continues to enjoy a positive and collaborative working relationship with Vinci,” the statement added.

Carillion’s Pier 5 project was due to be completed in May 2014, but is now not expected to be finished until March 2015, due to “some client changes and difficulties in working on a very dated pier to bring it up to a modern building and systems standards”, Gatwick said.

The budget of the project has been increased to £81.5m “to reflect the changes in scope following consultation with the airlines”, Gatwick said.

A Carillion spokesman said: “Because of the complexity of the work which involves major refurbishment to an existing structure there has been some time and cost over-runs.

“However, both Carillion and Gatwick Airport are working closely to ensure that delays are minimised to ensure that the pier is in operation for Summer 2015.”

Vinci has been contacted for comment.

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