London Banter - View Single Post - Crossrail construction contracts let at low prices

Bruce[_2_] · November 25th 11, 09:49 PM posted to uk.railway,uk.transport.london

(Theo) wrote:

Bruce wrote:

I believe the original estimates will have included an "optimism bias"
mark up

True, and the original cost estimates were made at a time when
construction prices were not only at a record high, but projected to
continue rising at a rapid rate.

The recession hit construction very hard and there is no sign of any
recovery. On the contrary, forward order books are at a very low
level. So prices have dropped considerably.

Is it fair to think that most building works for the Olympic Games are
finished now ?

Yes, that was one of the major causes of the price inflation. Material
costs such as structural steel and steel reinforcement for concrete
also rose due to demand from China and the Far East.

I do hope quantities are calculated right....

I think so, because Crossrail has enough capable people working on the
project.