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Stadium costs leap £20m
00:00 28 Oct 1998
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by John Leitch
Laing Civil Engineering's cost overruns on its Millennium Stadium project in Cardiff are "in excess of £20 million."
However David Blair, chairman of John Laing Construction, this week. But he insisted that future costs for accelerating completion will not add to the final bill and that the project will be ready in time to host the Rugby World Cup final in October 1999. Blair was speaking after John Laing issued a £33 million profits warning on Monday.
The statement warned that 1998 results would be hit by a £26 million provision against contracts in its civil engineering division, plus a further £7 million knock as a result of reorganising the group's construction division.
The activities of Building, Management Contracting and Civil Engineering will be consolidated within a new entity, Laing Ltd.
The stadium has been subject to design changes to accommodate departures from the original design concept.
Italian steel fabricator Cimolai is running seven weeks late on the steelwork and has issued a claim against Laing accusing it of providing insufficient and delayed design information.
Blair said this claim was now settled and added that he was hopeful of claiming much of this money back. "The other parties are the designers and the client," he commented.
"Additional steel and concrete was necessary by having to change the design of the roof." said Blair. This was necessary to stop cranes oversailing the land of the adjoining athletics club.
The stadium is scheduled to open on 26 June next year with a game against South Africa.
Asked if there would be acceleration costs still to add to the final bill, Blair said: "I can't say I think there will be any. But we will finish on time."
Asked if Laing had other projects with cost overruns, Blair replied: "Yes, we've had the odd one," but denied rumours that the Daiwa Securities building on London Wall or the new Parliamentary Building were causing problems. The consolidation of Laing's UK construction activities was flagged up at the group's interim results (CJ 16 September), though no mention was made of a £7 million cost.
Job losses can't be ruled out. "I don't know how many," said Blair. "It depends how much market there is for the new entity."
Laing Civil Engineering's cost overruns on its Millennium Stadium project in Cardiff are "in excess of £20 million."
However David Blair, chairman of John Laing Construction, this week. But he insisted that future costs for accelerating completion will not add to the final bill and that the project will be ready in time to host the Rugby World Cup final in October 1999. Blair was speaking after John Laing issued a £33 million profits warning on Monday.
The statement warned that 1998 results would be hit by a £26 million provision against contracts in its civil engineering division, plus a further £7 million knock as a result of reorganising the group's construction division.
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The activities of Building, Management Contracting and Civil Engineering will be consolidated within a new entity, Laing Ltd.
The stadium has been subject to design changes to accommodate departures from the original design concept.
Italian steel fabricator Cimolai is running seven weeks late on the steelwork and has issued a claim against Laing accusing it of providing insufficient and delayed design information.
Blair said this claim was now settled and added that he was hopeful of claiming much of this money back. "The other parties are the designers and the client," he commented.
"Additional steel and concrete was necessary by having to change the design of the roof." said Blair. This was necessary to stop cranes oversailing the land of the adjoining athletics club.
The stadium is scheduled to open on 26 June next year with a game against South Africa.
Asked if there would be acceleration costs still to add to the final bill, Blair said: "I can't say I think there will be any. But we will finish on time."
Asked if Laing had other projects with cost overruns, Blair replied: "Yes, we've had the odd one," but denied rumours that the Daiwa Securities building on London Wall or the new Parliamentary Building were causing problems. The consolidation of Laing's UK construction activities was flagged up at the group's interim results (CJ 16 September), though no mention was made of a £7 million cost.
Job losses can't be ruled out. "I don't know how many," said Blair. "It depends how much market there is for the new entity."
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