Crossrail firms braced for delays

Construction companies working on the £16bn Crossrail scheme are bracing themselves for a suspension of work on the project if the Conservatives win the next general election.

Any new Tory Government is expected to review Crossrail's future as it looks to rein back on public sector spending to rebalance the country's finances.

And consultants and contractors already working on the scheme are preparing for bad news.

One senior project source told Contract Journal: "Of course there are worries about spending levels after the next election.

"If there is a change of government they will have another look at Crossrail which could mean some period of pause and delay on the project."

Construction work officially started on Crossrail in May when Laing O'Rourke's Expanded division began digging on a new station at Canary Wharf.

Demolition work is also underway around Tottenham Court Road while a raft of consultants have been appointed ahead of main construction work starting on the tunnelled sections in 2010.

London Mayor Boris Johnson is believed to be concerned whether the capital can afford to fund Crossrail and complete the ambitious Tube modernisation plans.

The source said: "It's simply a case of there not being enough money for both. There could be some difficult choices to be made in the next year or so for the future of transport in London.

His fears have been echoed privately throughout the industry. One contractor planning to bid for work on the project said: "I won't believe the project is definitely going ahead until they get the TBMs in."

Meanwhile, Transport for London revealed moves this week to reduce the funding gap for Tube upgrade works by £2.5bn, by deferring work, cutting 1,000 jobs and changing engineering contracts in the wake of Metronet's collapse.

Under the new budget plans for three quarters of the Tube network, £800m will be saved by postponing the improvements to 50 stations. There will be a £500m saving from new terms with suppliers, and a further £200m cost reduction from carrying out some projects more efficiently.

Crossrail - where the cash is coming from

Total funding package £15.9bn

MAJOR CONTRIBUTORS:

Department for Transport £5.6bn (including £230m from BAA)

Corporation of London £350m

The Mayor via Transport for London £7.7bn

Network Rail £2.3bn

Canary Wharf Group £150m