Olympic Games Construction and Refurbishment Market - UK 2008-2012

SUMMARY

October 2008 sees publication of the 4th Edition of the report Olympic Games Construction and Refurbishment Market - UK 2008-2012. This significantly updates the previous edition published in July 2007 and provides an overview of the current status of the planned construction and repair, maintenance & improvement projects for the delivery of the 2012 Olympics in London.

Following the successful completion of the Beijing Olympics, all eyes are now on London to provide a memorable sporting spectacle. A key element underpinning a successful event is the development of 'world class' facilities which requires a substantial investment programme in stadia, accommodation and infrastructure.

Key areas in the report:

• Detailed overview of Olympic planning, design, construction and tender activity, as at September 2008
• The 2012 Construction Works Programme and budget estimates on for each venue and project
• A detailed breakdown of major construction and infrastructure contracts for the Games
• A review of both public and private funding for Games and an analysis of revised costs
• Review of the key players already awarded work and those bidding for current contracts
• Impact of the global 'credit crunch' on plans for the 2012 Games.

Areas of Particular Interest:

• The Report reviews the key 2012 construction and infrastructure contracts already awarded in 2007 and 2008 and progress on venues already on site.
• Construction progress made during 2007 and 2008 on the ODA's 10 milestones to be achieved by the closing ceremony of the Beijing Olympics in August 2008, known as 'Demolish Dig Design'.
• A detailed overview of the ODA's new set of 10 milestones 'The Big Build: Foundations' to be achieved by July 2009 - key projects/construction work.
• Focus on the commercial opportunities of the 2012 Games for suppliers, manufacturers and contractors.
• A detailed analysis of the impact of the 2012 Games on the Construction Industry and the economy as a whole including anticipated output values and workloads.
• 2008/09 Budget plans - Share by Infrastructure, Venues, Transport etc.

Key areas covered in the report include:

BACKGROUND TO THE OLYMPIC CONSTRUCTION PHASE

• Brief overview of the revised funding for the 2012 Games.
• Increases in costs for the Games since 2007.
• Legacy Capital Costs.
• Impact of the 'credit crunch' on the future costs and plans for the 2012 Games - e.g. Student Village.
• Overview of the main Olympic venues and changes to venue status.
• Overview of the 2008 Beijing Games including venues and costs and how they compare to London 2012.

NEW BUILD OLYMPIC CONSTRUCTION - PROGRESS TO DATE

• Overview of the progress made on 2012 construction during 2007 - 2008.
• Analysis of progress on the 10 milestones to be achieved by July 2009, known as 'Demolish Dig Design' - progress and targets for key projects including nature of construction work.
• Analysis of the new milestones to be achieved by 27th July 2009, known as 'The Big Build: Foundations'.
• Progress achieved during 2007 - 2008 on the Olympic Park with associated costs for each venue.
• Budget Plans for 2008-09 - Share by Infrastructure, Venues, Transport, Village etc.

LEGACY DEVELOPMENTS - PROGRESS TO DATE

• Analysis of the Legacy Action Plan - Phases 1-6.
• Overview of the regeneration of Stratford City.
• Overview of housing provision within Stratford City - impact of financing problems on Student Village.
• Legacy Capital Costs and Regeneration Investment - risks to schemes.

TRANSPORT AND INFRASTRUCTURE PROJECTS

• Overview of major transport developments for the 2012 Games - key projects, total budgets and 2008/09 planned expenditure.
• Major Road and Highways Developments.
• Major Rail Developments.
• Footbridge Developments.
• Utilities Developments.

2012 GAMES - CONSTRUCTION ISSUES

• Impact on the UK Construction Industry of the 2012 Games - anticipated output & workload values.
• Construction workforce requirements for the 2012 Games & 2012 training programmes.
• Procurement of 2012 Contracts, contract issues - Contracts awarded to date.
• Sustainability and environmental issues for the 2012 Games.
• Review of key projects, contractors, consultants etc.

TABLE OF CONTENTS

CONTENTS and LIST OF TABLES & CHARTS

1. INTRODUCTION 6

2. EXECUTIVE SUMMARY AND FUTURE PROSPECTS 7

3. BACKGROUND TO THE OLYMPIC CONSTRUCTION PHASE 11

• 3.1 DEFINITION 11
• 3.2. FUNDING FOR THE 2012 OLYMPIC GAMES 11
  • 3.2.1 Overall Funding 11
  • 3.2.2 Increases in Costs since 2007 13
  • 3.2.3 Public Funding 15
  • 3.2.4 Private Sector Funding 17
  • 3.2.5 Plan Budget for 2008-09 17
  • 3.2.6 Legacy Capital Costs 18
  • 3.2.7 Future Costs 19
  • 3.2.8 Impact of the 'Credit Crunch' 19
• 3.3 OVERVIEW OF THE MAIN OLYMPIC VENUES 20
• 3.4 MAIN CHANGES TO OLYMPIC VENUES IN 2008 23
• 3.5 THE BEIJING OLYMPIC GAMES 2008 25
  • 3.5.1 Costs and Procurement Issues 25
  • 3.5.2 Venues 26

4. NEW BUILD OLYMPIC CONSTRUCTION - PROGRESS TO DATE 30

• 4.1 PROGRESS MADE DURING 2007-08 30
• 4.2 THE ODA 2012 PROGRAMME 35
• 4.3 'DEMOLISH DIG DESIGN' 2008 MILESTONES - PROGRESS TO DATE 35
• 4.4 'THE BIG BUILD FOUNDATIONS' - 2008/09 MILESTONES 38
• 4.5 NEW BUILD VENUES - OVERVIEW 41
  • 4.5.1 Olympic Park 41
  • 4.5.2 Olympic Park - Estimated Capital Costs by Venue 42
  • 4.5.3 Proposed Construction Works Programme of New Build Venues 2007-2012 43
  • 4.5.4 Olympic Village 50

5. LEGACY DEVELOPMENTS - PROGRESS TO DATE 53

• 5.1 THE LEGACY PROGRAMME 53
• 5.2 LEGACY ACTION PLAN 55
• 5.3 LEGACY PLANS FOR 2012 VENUES 57
• 5.4 REGENERATION OF EAST LONDON 59
  • 5.4.1 Stratford City Regeneration 60
  • 5.4.2 Stratford City - Housing Provision 61
• 5.5 LEGACY CAPITAL COSTS AND REGENERATION INVESTMENT 64

6. TRANSPORT AND INFRASTRUCTURE PROJECTS 66

• 6.1 MAJOR TRANSPORT DEVELOPMENTS 66
  • 6.1.1 Rail 66
  • 6.1.2 Roads & Highways 74
  • 6.1.3 Footbridges 74
  • 6.1.4 Utilities 76

7. 2012 GAMES - CONSTRUCTION ISSUES 79

• 7.1 IMPACT ON THE CONSTRUCTION INDUSTRY 79
  • 7.1.1 Anticipated Output Values and Construction Workloads 79
• 7.2 CONSTRUCTION WORKFORCE REQUIREMENTS 80
  • 7.2.1 2012 Construction Training Programmes 82
• 7.3 2012 CONSTRUCTION COMMITMENTS 82
• 7.4 PROCUREMENT OF 2012 CONSTRUCTION CONTRACTS 84
  • 7.4.1 ODA Construction Contracts 84
  • 7.4.2 Procurement Issues to Date 85
  • 7.4.3 Contracts Awarded to Date 86
• 7.5 SUSTAINABILITY 88
• APPENDIX 1 91
• APPENDIX 2 93

TABLES AND CHARTS

• TABLE 1 OLYMPIC PARK DELIVERY PROGRAMME - KEY STAGES - 2005 - 2012 7
• TABLE 2 2012 OLYMPICS - BREAKDOWN OF THE £9.325 BILLION FUNDING PACKAGE - SITE PREP / INFRASTRUCTURE, VENUES, TRANSPORT, MISC. - BY PROJECT. 12
• TABLE 3 2012 OLYMPICS - ODA COSTS NOVEMBER 2007 BASELINE REPORT VS. POTENTIAL COSTS AS AT MARCH 2008 (VALUE BY SITEPREPARATION / INFRASTRUCTURE, VENUES, TRANSPORT, MISCELLANEOUS ETC) - BY PROJECT 14
• TABLE 4 2012 OLYMPICS - SOURCES OF PUBLIC SECTOR FUNDING 16
• TABLE 5 2012 OLYMPICS - PLAN BUDGET 2008-09 - BY SECTOR & MAJOR PROJECTS 18
• TABLE 6 OVERVIEW OF OLYMPIC VENUES AND LOCATIONS - MAJOR VENUES - CAPITAL COSTS AND CONTRACT STATUS 2008 21
• CHART 7 MAIN CHANGES TO 2012 OLYMPIC VENUES - 2008 24
• TABLE 8 BEIJING 2008 - MAJOR VENUES - SIZE AND CONSTRUCTION PERIODS 28
• TABLE 9 2012 OLYMPICS - CONSTRUCTION/PROCUREMENT DEVELOPMENTS 2007-2008 32
• TABLE 10 'DEMOLISH, DIG, DESIGN' PHASE - ACHIEVEMENTS ON MAJOR MILESTONES TO SUMMER 2008 36
• TABLE 11 'THE BID BUILD FOUNDATIONS' - 10 KEY MILESTONES TO 27TH JULY 2009 39
• CHART 12 % BUDGET ALLOCATED TO EACH NEW VENUE - 2008 43
• TABLE 13 OLYMPIC PARK CONSTRUCTION PROGRAMME 2007-2012 - BY NEW BUILD VENUE / BY YEAR - SPLIT BY INFRASTRUCTURE, PROCUREMENT, DESIGN AND CONSTRUCTION PHASES 44
• TABLE 14 2012 LEGACY PROGRAMME - KEY PHASES 54
• TABLE 15 LEGACY ACTION PLAN - KEY THEMES 56
• TABLE 16 OLYMPIC PARK PERMANENT VENUES - PLANNED LEGACY USE 58
• TABLE 17 2012 OLYMPIC LEGACY - TIMELINE 2009-2014 BY VENUE 59
• TABLE 18 LEGACY DEVELOPMENTS - PROPOSED MIX OF HOUSING IN THE OLYMPIC AREA 62
• TABLE 19 2012 TRANSPORT DEVELOPMENTS - MAJOR RAIL PROJECTS PROGRAMME TIMELINE 2007-2012 71
• TABLE 20 STRUCTURES, BRIDGES & HIGHWAY WORKS - CONTRACTS AWARDED 2008 75
• TABLE 21 UTILITY WORKS - CONTRACTS AWARDED 2008 77
• TABLE 23 CONSTRUCTION PERSONNEL REQUIREMENTS 2008-2012 81
• TABLE 24 2012 CONSTRUCTION COMMITMENTS 83
• TABLE 25 ODA SUPPLIERS BY LOCATION AND SIZE (END MARCH 2008) 86
• TABLE 26 PROCUREMENT DETAILS OF MAJOR 2012 CONTRACTS 87
• TABLE 27 ODA SUSTAINABILITY FRAMEWORK - KEY MEASURES - CLIMATE CHANGE, BIODIVERSITY AND WASTE MANAGEMENT ETC. 89
• TABLE 28 2012 CONTRACTS - DESIGN PACKAGES LET SO FAR IN 2008 KEY PROJECTS / DESIGNERS / CONSULTANTS 92
• TABLE 29 2012 CONTRACTS - CONSTRUCTION PACKAGES LET SO FAR IN 2008 - KEY PROJECT / CONTRACTORS / CONSULTANTS 93