Olympics cost controller picks up £10m windfall

Consortium tasked with controlling 2012 costs paid £10m bonus

Written by Nicholas Neveling

Accountancy Age, 11 Dec 2007

A £10m bonus paid to the consortium charged with controlling costs for the 2012 Olympics has been attacked by MPs.

The government confirmed that partner CLM was paid the fee as it provided a detailed breakdown of costs for the games.

Shadow Olympics minister Hugh Robertson told the FT: 'On a day when the government admitted the £500m for contingency it had earmarked for the Olympic Delivery Authority has already been absorbed into the budget, it seems curious to pay the delivery partner a bonus for keeping the costs down.'

Philip Davies, a Tory MP on the culture, media and sport select committee said it was 'ironic' that the costs of the body tasked with cost-control were escalating.

Minister for the Olympics Tessa Jowell confirmed that it had taken £500m from a contingency fund for the ODA to cover 'the cost pressures on early projects'. The total cost of the event is forecast to be £9.3bn.

The budget for managing the games will now be £647m as compared to the £16m budgeted when London was awarded the games in 2005.

The government defended the £10m bonus, saying it was 'spend to save'.