Carillion edges closer to £400m 2012 contract as Bouygues waits to be repaid bid costs
Carillion is on the verge of being confirmed as the developer of the £400m Olympic media centre after a wrangle over the building’s role after the Games was settled, it is understood.
Carillion and its development partner Igloo have been frontrunners for the project since March, but although a deal was expected to be signed off this week, no announcement has yet been made.
It is understood that the delay was partly because of concerns over the future use of the building, which has still not been determined, as the contractors were reluctant to commit to the deal without a clearer idea of what would be expected from the building.
However, it is understood that these fears have been allayed by the establishment of a board to oversee discussion of the building’s legacy use, in which Carillion and Igloo have been offered what one senior source described as “active participation”.
Meanwhile, losing bidder Bouygues UK is understood to be concerned that it has not yet been reimbursed its bid costs.
As part of the agreement with the Olympic Delivery Authority, the runner-up is entitled to full repayment of its costs.
The outstanding sum is believed to be in the region of several million pounds.
Bouygues is understood to have submitted an invoice more than four weeks ago but, according to one source close to the process, there has been a “worrying radio silence ever since”.
The source added that there was concern that the delay in formally awarding the contract to Carillion was owing to problems the bid team was having in obtaining funding because of the credit crunch.
Bouygues declined to comment.
The ODA refused to comment on the issue of bid costs or funding but said the contract would be awarded shortly.