The final bill for the conversion of the Olympic Stadium in London was recently confirmed by the London Legacy Development Corporation whilst main contractor Balfour Beatty continues work on the contract.
The original estimated costs for the project were valued at around Â£154m, however an additional Â£36m was awarded to Balfour for the works in October 2014.
The works included the removal of the original roof and light paddles, and the installation of a new permanent roof, said to be the largest of its kind in the world. This required significant works to be completed on the superstructure to enable it to support the 45,000 square metre cantilevered roof, 8km of cable net, 112 steel rafters, 9,900 roof panels and 14 light paddles which each weight 45 tonnes.
An innovative retractable seating system also required the removal of the lower seating bowl, with 21,000 movable seats to bring fans close to the pitch for football, rugby and motorsport.
Other works included the installation of permanent catering facilities, toilets and turnstiles.
The LLDC commented that the latest increase â€œreflects the huge scale of the works undertaken to transport the former Olympic venue from a temporary athletics stadium into a year-round multi-use arena capable of delivering world class sporting and cultural events.â€
The LLDC still holds a contingency fund due to the large amount of work still needed before West Ham football club take up permanent residence.
The conversion is a prime example of how project costs can quickly and dramatically increase, particularly in large high-value projects. Managing budgets and costs from the beginning of a project is imperative, particularly if there is not an endless pot of funds available.
Kenzie Project Services division can help to predict and manage project costs and budgets to ensure that you are not left in a sticky spot when costs do run above original estimations.