More than £100 million of contingency funding is being held to cover remaining risks in the Olympic programme, with the cost of renovating the Olympic Village up by £36m on initial forecasts.
The London Legacy Development Corporation has begun to take control of the Olympic Park, with the Olympic Village due to be handed over to the ODA shortly so its renovation can begin.
The Olympic Delivery Authority announced in August it had completed the sale of the Olympic Village to a joint venture of Delancey and Qatari Diar, which will invest £557m in its future development.
LLDC has taken operational control of the Olympic Park including perimeter security, access control, logistics operations and associated areas.
It will then begin works to transform the centrepiece of London 2012 into the Queen Elizabeth Olympic Park through a £292m construction project.
The LLDC said a “significant proportion” of temporary overlay has already been removed from the site in the six weeks since the closing ceremony of the Paralympic Games.
Olympic Village costs:
The government has announced an increase of £36 million in the forecast cost of Olympic Village completion, following internal transfers and a re-assessment of retrofit costs post-Games.
The government said this was due to factors including buying losses; the continuing impact of contractor insolvency; acceleration and re-phasing to ‘de-risk’ the programme; ensuring transfer to the purchasers by March 2014; enhanced security; and extra assurance costs to ensure delivery remains to timetable.
The Olympic Village will create:
• A complete neighbourhood of 2,818 homes including 1,379 affordable homes
• Family housing with nearly 1,000 three and four bed homes
• New homes across 11 plots
• A new neighbourhood that spans over 27 hectares of land, equivalent to St James’s Park in central London, with wide tree lined streets and open public spaces
There are still significant contracts to be won at the site, including a deal still pending for the redevelopment of the 28-acre South Plaza and South Park, while the future tenant for the Olympic Stadium has yet to be confirmed.
LOCOG has phased handover dates for specific venues and spaces to the LLDC. The Aquatics Centre, the Velodrome and the Basketball Arena have now been handed over to LLDC, while the Copper Box will ready in November and the Olympic Stadium and Press and Broadcast Centres will be handed over in December.
Meanwhile it was announced that £103m of contingency funding is being held to cover remaining risks in the Olympic programme, such as the retrofit of the Olympic Village for legacy use and “closing out around 2,000 ODA and LOCOG contracts”.
In total, £480m of uncommitted contingency still remains within the budget.
The anticipated final cost of the ODA’s construction and transport programme is £6.714 billion. Savings made by the ODA on its programme have now reached £1.032bn.
Sports minister Hugh Robertson said: “It is thanks to the hard work and expertise of the Olympic Delivery Authority, and its contractors, that we kept within a strict, well-managed budget.
“The ODA laid the firm foundations and the London Organising Committee ran a truly remarkable Games.”
Work to date:
LOCOG and its contractors have completed a programme of utilities disconnection and removal of temporary power cables, generators, telecoms and equipment from venues. The wider overlay deconstruction programme has also been completed which included the removal of the BMX stands, Olympic Stadium wrap and cable trusses, way-finding and signage, temporary media desks in seating stands, fencing, temporary toilets and concessions, Games-time workforce areas and information and medical tents.
All temporary structures will be removed including: 250,000 modular/temporary seats, 165,000 sq ms of tents, 140km of fencing, 240km of crowd barriers and 100,000 sq ms of temporary sports surfaces
The temporary structures will be removed by contractors to be reused at other events and venues around the UK. Signage and ‘wayfinding’ will mainly be recycled.
An estimated workforce of 5,000 contractors has been on the Park to carry out the works – removing the majority of LOCOG’s overlay structures by the end of November.
The vast majority of LOCOG’s temporary venues across London outside the Olympic Park have been reinstated and handed back to venue owners. Work included the removal of 15,000 temporary seats and 4,000 tonnes of sand at Horse Guards Parade, the removal of the pontoon on the Serpentine at Hyde Park, removal of stables and the temporary arena at Greenwich Park and 40,000 seats, 300 cabin units, lighting, back of house facilities and training and warm-up courts.