THE FINAL cost of the steelwork package at Wembley stadium will be £150 million, more than twice the original budget.
Construction News understands that the Dutch steel firm brought in to replace Cleveland Bridge 18 months ago will have been paid close to £100 million by the time it finishes the job in March.
Hollandia was drafted onto the project in July 2004 to complete work on the bowl, roof and truss but did not actually sign a deal with main contractor Multiplex until the following November.
The last sections of steel are currently being lifted into place and the depropping of the roof is due to be completed by the middle of next week.
Under its cost-plus deal, Hollandia has so far been paid £80 million and the final figure is expected to come in at around £90 million. This is in addition to the £58 million Multiplex paid Cleveland Bridge for the work it carried out up to summer 2004.
The original cost of the steelwork package was £60 million. The scale of the overrun will be reflected in a new set of figures due out in three weeks, detailing how much Wembley will end up costing Multiplex. The firm is privately admitting it will blow £150 million on the whole project but speculation is increasing that it will end up losing more.
One source said: 'The only firm making anything on this is Hollandia.
The longer they are on site, the more money they make. Multiplex has to be looking at a £200 million hit on Wembley.' Multiplex had hoped to bring Hollandia on board under a fixedprice deal but, according to revised documents it filed at the High Court last month as part of its ongoing legal battle with Cleveland, the Aussie firm said it had no choice but to agree the prohibitive cost-plus method.
It said: 'By reason of Cleveland Bridge's abandonment of the project, Multiplex did not have the opportunity to negotiate a fixed price with Hollandia.
'Once Hollandia commenced onsite erection and discovered the full extent of the disarray left by Cleveland Bridge, Hollandia was unwilling to agree to a fixed price arrangement.' In its revised court documents, Cleveland said it offered to finish the steelwork for a fixed price of £36 million before Hollandia was taken on.