Heathrow East delayed, T5 to blame

Contractors are being warned that construction of the £1.5bn Heathrow East project could be delayed by up to a year.

CJ understands that airport operator BAA has held a series of briefings with contractors warning them about possible hold-ups.

Potential delays are being blamed on the chaos surrounding T5's opening and the knock-on effect it had on BA's plans to relocate all of its flights into the new terminal.

One contractor said: "We were all geared up to start this year, but have now been told that work won't start until late 2009.

"BAA is blaming the screw-up at T5 for the delays, but a more cynical view could be that they are struggling to raise finance for the project."

The Heathrow East scheme will involve demolition of the outdated T1 and T2 buildings and their replacement with a new terminal.

The original plans were for parts of the new terminal to be open in time for the London 2012 Games.

But the problems surrounding T5's disastrous opening have pushed back plans and raised a major doubt over the Olympic opening.

A BAA spokesman said: "In principal we've had to review the timing of the project and spoken to some contractors. It is not the case the project is on the backburner - it's proceeding actively."

BA was due to move its operations into T5 in March. However, teething problems meant the move will not be complete until October.

The BAA spokesman said: "Redevelopment is like putting together a puzzle and the T5 situation does cause a back-up. The Heathrow East programme is not sequential so not everything is grinding to a halt.

"We are still reviewing the impact of the delays but we are experienced in making up lost time. Demolition is due to start next year."

BAA owner Ferrovial is main contractor on the job in a joint venture with Laing O'Rourke. Balfour Beatty has also picked-up a £350m package.