The Vancouver Organizing Committee for the 2010 Winter Olympic Games and Paralympic Games (VANOC) released Friday a new capital budget for the construction of venues and other infrastructure needed to host the 2010 Games. According to the budget the cost of building venues for the Games has risen by 23 per cent, boosting the construction costs of the 2010 Games to $580 million.
In bid documents submitted to the International Olympic Committee (IOC) the organizing committee had estimated the cost of building venues for the Games at $470 million.
Furlong said, “understanding the heated construction environment we are operating in, our team spent the past two years rigorously examining every potential savings and efficiency. We’ve identified $85 million in venue cost efficiencies so far”.
Furlong said the new construction price tag is the final figure and has formally requested an extra $55 million each from the federal and provincial governments.
“We will stop at nothing to responsibly manage the risk of cost increases through rigorous venue planning and design, negations and cost controls”, said Furlong.
In a press release Vancouver 2010 said the initial capital estimate was prepared according to IOC requirements and bid rules in 2002 dollars with no adjustment for inflation and/or potential rising construction costs. The bid corporation reportedly acknowledged at the time of submission that its bid capital estimate would require adjustments for these unpredictable factors in the future.
According to the news release discussions with the provincial government regarding the funding request are ongoing and will begin in earnest with the new incoming federal government as soon as possible.
“We’re dealing with a highly-charged business and construction environment in BC (British Columbia) that shows no sign of slowing down. Certain of our major venues are large, unique and complex structures with exacting safety and sport requirements that leave little room for adjustment. Some require not only extensive steel and concrete but also highly specialized and experienced contractors”, said Furlong, adding that the average increase costs in B.C. was nine per cent in 2004.
