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Olympic Games 2012: Construction

Volume 481: debated on Monday 27 October 2008

To ask the Minister for the Olympics what the original estimate for building cost inflation in the Olympic Construction Budget was for each year to 2012; and what the most recent estimate is for each such year. (229334)

[holding answer 23 October 2008]: The funding envelope of £9.325 billion assumed construction inflation of 6 per cent. per annum. The current but as yet unsubstantiated estimates of inflation indicate a downward trend but in view of the present volatility, the Olympic Delivery Authority advise that a further six months procurement data will be required before any reasonably accurate assessment can be made. Any savings as a result of lower construction inflation will help to offset cost increases.