Olympics construction partner came in 63% over budget
I’m indebted to a sharp-eyed Slogger for bringing this little triumph of Sir Humphrey purchasing nous to my attention. It involves building works done for the Olympic Games by the joint venture company CLM.
To use the Locog jargon, CLM was a ‘private sector delivery partner’ for the Olympics. A couple of years after Britain was ‘awarded’ the Olympic Games in 2005, construction work began in earnest. As this happens, CLM’s proft margins leap from an average of 10%…to 32% in 2008, 35% in 2009 and 2010 – and then a whopping 41% in 2011.
This is standard stuff when the private sector supplies the boys in Whitehall: no attention to commercial detail from the buyers….and the nearer things get to completion, the more the Sir H’s start to fret – the more the bills get loaded.
It seems the final bill for CLM’s services is now expected to total £650m – a 63% rise above the £400m originally quoted.
And this is just one supplier. Keep a sharp eye out for those final Olympics costs.
Pop goes the weasel, etc etc