Your browser is no longer supported

For the best possible experience using our website we recommend you upgrade to the newest version of your browser.

Your browser appears to have cookies disabled. For the best experience of Construction News, please enable cookies in your browser.

Welcome to the Construction News site. As we have relaunched, you will have to sign in once now and agree for us to use cookies, so you won't need to log in each time you visit our site.
Learn more

No panic over 2012 village

London 2012 chiefs insist plans for the Olympic Village are on track despite the fact work is due to start next month without a contract being agreed with a contractor.

The Olympic Delivery Authority admit that the "challenging" global economic climate has made agreeing a final deal with Australian firm Lend Lease more difficult.

The issue will be one of the main items International Olympic Committee inspectors will seek assurances over when they start a three-day visit to the capital today.

The IOC's co-ordination commission have had little cause for concern over London's preparations previously but the fact that a contract has yet to be signed for the village has raised eyebrows.

The ODA insist interim agreements with Lend Lease, the only firm bidding for the project, will allow work on the village to start next month.

An ODA spokesman said: "The Olympic Village site is now clear. Planning applications for the first blocks of the flats have now been submitted and Lend Lease are due to start piling next month.

"We expect to sign interim agreements shortly and aim to have financial arrangements in place before the main build later this year.

"The changing economic situation remains a challenge but we remain on-programme."

The IOC are aware of the situation and are expected to ask for clarification on the current standing of the project.

A source close to the IOC's co-ordination commission told PA Sport: "The commission will want to be satisfied that construction of the village will proceed on time and as planned.

"It is the biggest project in Olympic Park and the commission will want assurances."

The Government allocated GBP492million of their budget to build the village and the international media centres and hope to raise a significant sum from the private sector, but they may have to raid their contingency fund to seal a deal.

There is also a source of income from selling the accommodation for 17,320 athletes and officials as 3,000 apartments after the Games.

Negotiations with Lend Lease are covering not just the cash for building the village but the firm's involvement with selling the flats post-2012.

The IOC will visit the venues this morning and then meet the main London
2012 leaders, including Johnson, London 2012 chairman Sebastian Coe, Olympics minister Tessa Jowell, British Olympic Association chairman Colin Moynihan and ODA chairman John Armitt.

Related Jobs