More Victoria delay sounds TfL funding alarm

Transport for London (TfL) has delayed announcing the winner of its £695m Victoria Station upgrade, despite the government giving the project the go-ahead last week, prompting concerns about funding problems at the capital’s rail operator.

Three teams – Balfour Beatty/Morgan Est, Nuttall/Taylor Woodrow and a Costain/Laing O’Rourke/Bachy Soletanche joint venture – expected the announcement of a winner this week, but TfL has said they must wait another two months.

One contractor said: “They told us that TfL’s finance committee had approved a winner, but that an extraordinary board meeting was held where they decided to delay the announcement until October. It’s definitely concerning, they’ve already cancelled some other jobs this year.”

But there has been some speculation that TfL is rescoping the job.

Another contractor added: “Victoria Station isn’t as essential for TfL as Tottenham Court Road, so I think they’ll think again about the scope of the project.”

Adding further to the worries is that TfL has delayed the issuing tenders for Bond Street.

A contractor said: “We were due to receive them on 27 July, but they have said we will have to wait another three weeks. No exact date has been given.”

Meanwhile, tenders for Tottenham Court Road were returned on 24 July by five teams - Balfour Beatty, Morgan Est, Taylor Woodrow, Skanska/Mace and Costain/Laing O'Rourke/Bachy – and a decision on the job is expected in late November.

A TfL spokeswoman said: "The construction contract for the Victoria Station Upgrade will be let in the Autumn.

"The Secretary of State recently gave planning permission for the project, following a three month public inquiry. Construction will commence in 2010, subject to approval by the TfL Board in the Autumn."