Cost of McAlpine's Olympic Stadium soars with £22m increase

A lack of competition among contractors to build the main 2012 stadium is coming back to haunt Olympic chiefs as a construction cost rise of £107m for the Games was confirmed by the Government today.

Figures from the Department of Culture Media and Sport show costs on most of the major Games venues have increased.

Nearly a quarter of the increase is on the main Olympic Stadium being built by the Sir Robert McAlpine-led Team Stadium. The consortium was the only serious bidder for the job which has now risen in price by £22m to £547m.

The report claims this was mainly down to: “The outcome of the contract price negotiations – reflecting the development of the design, and the lack of competitive tension in the procurement.”

Costs have also risen by £5m to £251m on the Aquatics Centre and £25m on the Velodrome due to “more complex foundations and ground conditions.”

Olympics minister Tessa Jowell said that the total project is on track to stay within its £9.3bn budget.