Olympic road closures ‘could cost industry millions’

Road closures during the Olympic Games could trigger multimillion-pound losses across the industry, one of the sector’s largest contractors has warned.

James Wates, deputy chairman of Wates Group, said workers would struggle to get on site and materials deliveries would fall behind schedule.

Questions would be raised about who should absorb costs linked to delayed completion and staff accommodation in London, he added.

“We obviously bid our projects on the basis of a fixed price, and a client’s not going to say: ‘I hear your story boys, I’m going to pay you more for your guy who’s being given accommodation’. Clients will say: ‘Tough’.”

Wates said he would consider asking employees to camp at their sites, as the increased cost of hotel rooms during the Olympics would raise costs for firms seeking to put up large numbers of staff.

He also anticipates huge pressure on materials deliveries, especially where space for holding materials on site is severely limited.

“Most London sites that will be affected will be tight sites with very little storage,” he said.

“We always have to be pretty clever in the way we get materials on site. But if we have to stockpile to deal with the Olympics factor, I don’t know if we’re going to get room.”

Turning to the wider cost of travel restrictions, Wates said: “Major contractors of course will be affected, but I’m thinking more of the smaller contractors […] They’re just doing their job as best they can, and they’re going to be the ones who really get hit – small builders looking to come into London with a van suddenly can’t come in.

“It’s going to have a huge impact and I think that will have an impact on the reputation of our industry.”

The Olympics and Paralympics will run for 28 days, but the capital could face up to 100 days of reduced road coverage.