Olympic Stadium cost for West Ham move to rise by £50m
The cost refurbishing the Olympic Stadium for West Ham's move looks set to rise by up to £50million due to the complexity of extending the roof.
The club would not have to pay of any increase in construction costs however, while stadium sources say there will be no delay in completion.
The London Legacy Development Company is in talks with constructor Balford Beatty about the increased cost.
Construction Enquirer magazine has reported that Balfour Beatty has asked for an extra £50million, but the firm would not comment on the report.
The Olympic Stadium is due to host 2015 Rugby World Cup matches in September and October next year, with West Ham to move in to the venue in 2016.
The work to strengthen the roof and extend it to cover the retractable seating over the running track has proved extremely complex and construction experts are using similar technology to that used on North Sea oil rigs.
The original stadium cost £429million to build and the fixed conversion fee with Balfour Beatty was agreed for a further £154milion. There was however a flexible cost element to the roof work as it is unique in terms of stadium development. Should the roof end up costing an extra £50million, and stadium authorities remain hopeful it will be significantly less, that would take the final bill to £634million.
None of the extra cost will have to be borne by West Ham however. The deal it agreed last year with the LLDC, which is chaired by London mayor Boris Johnson, will see the club contribute only £15million for a 99-year lease together with annual rent and a share of income.
It is understood any rise in cost would come out contingency funding and from other savings.
An E20 Stadium LLP spokesperson said: "The project still has close to two years to run and we are in no doubt Balfour Beatty can deliver the programme as planned. This is a complex project and there are always ongoing discussions about specific elements within it."