Boss of developer behind the revamp of the power station revealed to Building that costs on phase two were now above £1.15bn
Mace has been appointed to replace Skanska on the Wilkinson Eyre-designed phase two of the £9bn redevelopment of Battersea Power Station in London.
The contractor will take up a construction manager role on the work which will see the iconic grade II* listed power station converted into new offices for Apple as well as a new retail destination with a six-acre park.
Mace has already worked on the project, carrying out pre-construction works on phase two in 2013 prior to Skanska taking on the main role on the second phase, which has seen the removal and reconstruction of the power station’s iconic chimneys.
Skanska, which was working on the scheme without a formal contract, said the firm and Battersea Power Station Development Company had mutually agreed to end their association on phase two of the scheme.
The firm’s existing contract is expected to end this autumn. Gregor Craig, chief executive at Skanska UK, said: “Skanska UK and BPS have jointly agreed to part ways at this stage in the Power Station works and our efforts are now focused on enabling [Battersea Power Station] to complete the transition as effectively as possible.”
Mace chief operating officer Gareth Lewis added: “After working closely with the Battersea Power Station team during 2013 and 2014 on the engineering and the reconstruction of the Power Station’s distinctive chimneys, we are delighted to be awarded such a landmark project.”
The developer said it had decided an alternative construction management procurement would better suit the next stage of development on phase two.
Earlier this month, its boss Rob Tincknell told Building that the original £750m estimated cost of phase two was now more than £1.15bn.
He said: “It [was] reported it went to £1.15bn – and it’s now north of that figure.”
The soaring costs of the scheme was also given as the reason Wandsworth council approved a request by the developer to review its affordable housing quota in June.
The chairman of the council’s planning applications committee Richard Field said: “The escalating cost of restoring the power station building means this development project is facing significant challenges and the committee had a very difficult choice between accepting a potentially lower number of affordable homes, or refusing the application and risk losing all of them. This development also directly funds the Tube extension which is bringing 25,000 jobs to Battersea, so the stakes are extremely high,” Field said.
He added: “We would never accept a potential reduction in low cost homes unless the case was overwhelming.”
The appointment of Mace is the second time this year the power station developer has switched contractors. Back in May, it confirmed Sir Robert McAlpine was appointed on the residential-led phase 3a of the scheme, designed Frank Gehry and Foster + Partners, in place of French contractor Bouygues. McAlpine is carrying out the work under a construction management contract.