The public must recognise that the cost of the Olympics will continue to rise between now and 2012, says Teasel

Project success will be determined by the quality of the London Olympic Games, and its legacy - not the final number in the accounts.

London, 5 March 2007 - Simon Elwell, of performance management consultancy, Teasel, warns that even though the 2012 Olympics will be delivered on time, we shouldn't assume that the latest increase in the budget will be the last.

"There is obviously a strong political drive to agree the budget for the 2012 Olympic Games - the Olympic Delivery Authority is due to confirm the projected spend sometime in the next few weeks - but I'm prepared to make a bet that whatever number they put forward now will still be some distance short of the final figure," says Simon Elwell.

According to Teasel, no matter how large and complex the programme, there are normally only four variables that can be manipulated to ensure a successful outcome:

Time - even though there's five years to go, the dates are (like Y2K) fixed. In the end, the ODA will simply have to do whatever is necessary to deliver on time.

Quality - the ODA could compromise on quality, but would the UK really want to be remembered as the only member of the G8 to deliver a mediocre games?

Scope - that would mean making it a smaller games with fewer sports or limiting the number of nations taking part. The problem is, the scope is set by the International Olympic Committee, and we've already said we can deliver.

Cost - the ODA, or the Government could cap the project resources including cash, people, equipment and so on.

"The only thing that could flex in this project is its cost," Elwell continues. "But unless the ODA has a super-human planning team which has genuinely thought of absolutely everything that could happen between now and 2012 - it's a fair bet that costs will rise."

Teasel believes a contingency of 60%, as suggested by the Treasury, is probably fairly realistic although even this could turn out to be insufficient. This does not mean, as some people fear, that the ODA and its contractors can take advantage of a blank cheque book. A major programme like this should always have its costs subjected to unprecedented scrutiny.

Elwell concludes: "We ought to be more sanguine about this. With just over five years to go it's impossible to predict what the final cost will be, but we could waste a lot of time trying, rather than getting on with the task at hand."

"Let's be honest for once, and recognise that the cost of the Olympics will continue to rise between now and 2012. What will determine the success of the project will be the quality of the London Olympic Games, and its legacy - not the final number in the accounts."

For further information

Tony Martin
Portfolio Communications Ltd
t: 020 7240 6959
e: tony.martin@portfoliocomms.com

Tim Burfoot
Teasel Performance Management Ltd
t: 01223 370184
e: tim.burfoot@teaselpm.com

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