Skip to main content

CLM: Finance

Volume 497: debated on Monday 12 October 2009

To ask the Minister for the Olympics for what reasons CLM was paid £60.2 million by the Olympic Delivery Authority in performance-related payments up to March 2009. (289243)

As outlined in the Olympic Delivery Authority's (ODA) 2008-09 Annual Report, performance payments are payable to CLM for the achievement of pre-agreed key performance indicators for the delivery of programme milestones and cost targets.

Payments to CLM during the financial year 2008-09 reflect the increase in scale of the project in the last year as construction activity increased, and the strong progress being made as the project remains on track and within budget.

The ODA, working with CLM, achieved significant savings of £390 million in the last year. The savings derive primarily from reduction in scope and value engineering changes, procurement savings, inflation and VAT savings, and have been applied to cost pressures as they have arisen. In particular, they have been used to help fund the Olympic Village and ensuring that the programme overall can be delivered within budget.

CLM's contract is heavily incentivised and payment to them is dependent on meeting strict performance measures tied to delivering on time, to budget and to a high standard.