Cost control bill sees Olympic budget soar

The government has admitted that it did not include project management costs
totalling £400m in its budget for the 2012
Olympic Games

Culture secretary Tessa Jowell admitted that CLM, a private sector
consortium, had been awarded a £100m contract to manage construction of the
Olympic venues but also included an added cost of £400m in the budget.

When asked why a contract to keep costs down had helped send the project over
budget, Jowell said that the extra spend was to make sure the job was ‘done
properly’, reported the FT.

The £400m is part of the £900m increase from the original £2.4bn budget for
building the Olympic Park

A VAT bill in the hundreds of millions of pounds will
be included in the budget after it had not been originally accounted for.

Reports suggest the new budget could top £5bn.

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