Olympics will push up UK costs

Mixed-use developer Henry Davidson Developments said the amount of work created by 2012 will have a knock on effect on construction costs elsewhere.

Managing director Scott Davidson said: “As soon as work begins on the new Olympic facilities we will move into a period of spiralling construction costs most intense in London with a ripple effect moving outwards.”

Davidson said that rising costs will be passed on to taxpayers and consumers and backed a call from the National Federation of Builders for the government to tackle the skills shortage that could exacerbate cost inflation.

The move came as the Association for Consultancy and Engineering said it was setting up two industry groups to support the Olympics team.

ACE chief executive Nelson Ogunshakin said: “Our decision to set up these groups follows consultation with the industry. The two groups will provide an important interface with the Olympic delivery authorities and government. They will look at key areas such as procurement, planning and sustainability.”