Memorandum submitted by the Institution
of Civil Engineeers (ICE)
INSTITUTION OF
CIVIL ENGINEERS
1. The Institution of Civil Engineers (ICE)
is a UK-based international organisation with over 75,000 members
ranging from professional civil engineers to students. It is an
educational and qualifying body and has charitable status under
UK law. Founded in 1818, the ICE has become recognised worldwide
for its excellence as a centre of learning, as a qualifying body
and as a public voice for the profession.
2. The Institution has chosen to focus its
comments only on the issue of the preparation of the venues for
the Games.
PROGRESS IN
PREPARING VENUES,
BOTH WITHIN
THE OLYMPIC
PARK AND
ELSEWHERE
PROGRESS IN
DELIVERY
3. The ODA has been tasked to deliver the
infrastructure for the 2012 Olympics at a time of major growth
in the global construction industry. This activity has impacted
on the both the cost of materials and labour globally and will
inevitably effect the costs of delivery of the venue. New Civil
Engineer magazine has reported that construction inflation in
the London region is likely to remain at around 6.5% in the period
up to 2011 when the majority of work on the venues will be complete.[5]
4. High growth in London, the UK and the
rest of the world has already led to several contractors withdrawing
from tenders for ODA projects. For example Hochtief withdrew from
the tender process for the aquatics centre and gave the public
explanation that this was due to their having taken on significant
work abroad. Given the current circumstances this reduction in
competition can be expected to continue. It can also be anticipated
that engineers, with expertise in the delivery of major projects,
including sports venues will be receiving opportunities for work
on many other prestigious projects.
5. It is noted that the ODA has tightly
controlled the budget for the delivery of venues and infrastructure
and that other projects may appear to be more profitable and carry
less contractor risk. The requirement for transparency from consortia
and their supply chain as to their costs must be enabled by the
chosen procurement/contractual approach. This will help in ensuring
more certainty in the final delivery costs for the project. There
must also be a fair distribution of risk.
6. The ODA has chosen to package the tendering
of the games into projects that are manageable by only the largest
organisations in consortia. This may impact on the London2012
aims of delivering a legacy in local integration as contractors
opt for surety over uncertainty of supply.
7. In addition it is understood that some
key venues still do not have "legacy owners". When they
are on board, the ODA must guard against the risk that their belated
requirements may delay the design and construction process.
8. ICE remains confident that, through the
use of the NEC contract to procure the games, the venues and infrastructure
will be delivered to the timescale indicated. However, lead times
for materials and plant are currently increasing and so early
start dates will reduce the risk of any overruns.
INCLUSIVENESS
9. The ICE has a positive approach to equality
and diversity and has been working in London to broaden the inclusion
of those involved in London2012. The original aim was that Londoners
across the spectrum would build the Games. This has yet to be
realised.
10. As the design phase for the venues and
infrastructure draws to a close we do not believe that there has
been any discernible change in the composition of gender, ethnicity
or disability within the design teams. It is therefore more likely
that any legacy will be delivered in the supply chains of those
companies constructing the games. However, at present the mechanisms
for the delivery of this are fragmented and unfocused on delivering
broader inclusion. ICE is encouraged by the commitment of Crossrail
to the same legacy goals and would encourage the DCMS to support
an organisation to coordinate this.
November 2007
5 More Cash, Less Spend, New Civil Engineer,
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