Construction projects in central London to be hit after industry fails to lobby for concessions.
The central London congestion charge is likely to cost the average London construction site an extra £50,000, research conducted by the Corporation of London has found.

The corporation's strategic transportation director, Joe Vice, said sites would incur the extra costs in direct fees, subcontractor costs and administration.

He said a typical central London project lasts about 18 months and receives about 15 deliveries a day. This means that a congestion charge of £5 a vehicle a day would add at least an £30,000 to its construction costs.

Vice added that visits to the site by electricians and other workers, along with additional administration costs, could take the total pricetag to £50,000.

Vice said "It's going to have a significant cost [for the industry]. Electricians and others have heavy equipment so they won't be able to travel by public transport."

He said that construction firms had no alternative but to drive into central London, and that the charge was a levy on them for carrying out their day-to-day business.

The first few weeks will be interesting; there will be a lot of anger

Peter Rogers, chairman, the strategic forum

Building revealed last week that the construction industry had missed the chance to avoid paying millions of pounds in congestion charges because it failed to lobby the Greater London Authority for a discount or an exemption from the scheme.

Rod Pettigrew, legal adviser to the Heating and Ventilation Contractors Association, said the industry had not done any effective lobbying against the scheme.

He said: "I sat on a CBI committee on the congestion charge some time ago but that's all I've heard on it. The industry has not met to appeal for concessions on the charges."

Under the scheme, which comes into effect on 17 February, all vehicles will be charged to enter central London. Drivers who have not paid by 10pm on the day of their visit will be charged an additional £5. Those who do not pay the charge will be liable to fines of £80, rising to £120 if they do not pay within a month.

Peter Rogers, chairman of the strategic forum, has predicted that many firms will be taken by surprise by the charge.