
2010 Games costs up $110 million CBC \|\| February 06, 2006 [KDR: Could we have seen this comming? Budget Failure Practically Built into Olympics] The cost of hosting the 2010 Winter Games in Vancouver has shot up by a whopping 23 per cent. John Furlong, Chief Executive Officer of the Vancouver Organizing Committee (VANOC), revealed a revised venue budget for the 2010 Games on Friday, one that has ballooned to $580 million from the original $470 million estimate. Rising construction costs and a shortage of skilled workers in Vancouver's competitive building industry led to the new budget figure. "We will stop at nothing to responsibly manage the risk of cost increases through rigorous venue planning and design, negotiations and cost controls," said Furlong. Furlong explained that the new budget figure comes after VANOC identified other ways to cut the overall cost of the Games. "Understanding the heated construction environment we are operating in, our team spent the past two years rigorously examining every potential savings and efficiency," he said. "We've identified $85 million in venue cost efficiencies so far." Article Posted at www.KnowledgeDrivenRevolution.com Furlong said Vancouver's initial capital estimate was prepared, according to International Olympic Committee requirements, in 2002 dollars and made no adjustment for inflation and potential increases in construction costs. According to Furlong, the new construction estimate is the final figure and that VANOC has formally requested an extra $55 million each from the federal and provincial governments to cover the shortfall. The provincial and federal governments have already committed $310 million each toward Olympic construction costs. Any cost over-runs are supposed to be paid for by the provincial government. The province has already said it thinks the Games can be completed within a $139 million contingency fund it created to cover cost over-runs. Furlong stated that the organizing committee is "determined not to return to the taxpayers of Canada for additional public funds to complete the venue program." "It is clear that until venue construction is completed in 2008 there will continue to be the risk of unforeseen cost increases. Our pledge to taxpayers is to limit their investment in these venues to $580 million," Furlong added. About KDR \| \| Home \| \| Weekly Features Archive	Weekly Weekly Features Archive
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2010 Games costs up $110 million

CBC || February 06, 2006

[KDR: Could we have seen this comming? Budget Failure Practically Built into Olympics]

The cost of hosting the 2010 Winter Games in Vancouver has shot up by a whopping 23 per cent.

John Furlong, Chief Executive Officer of the Vancouver Organizing Committee (VANOC), revealed a revised venue budget for the 2010 Games on Friday, one that has ballooned to $580 million from the original $470 million estimate.

Rising construction costs and a shortage of skilled workers in Vancouver's competitive building industry led to the new budget figure.

"We will stop at nothing to responsibly manage the risk of cost increases through rigorous venue planning and design, negotiations and cost controls," said Furlong.

Furlong explained that the new budget figure comes after VANOC identified other ways to cut the overall cost of the Games.

"Understanding the heated construction environment we are operating in, our team spent the past two years rigorously examining every potential savings and efficiency," he said. "We've identified $85 million in venue cost efficiencies so far."

Article Posted at www.KnowledgeDrivenRevolution.com

Furlong said Vancouver's initial capital estimate was prepared, according to International Olympic Committee requirements, in 2002 dollars and made no adjustment for inflation and potential increases in construction costs.

According to Furlong, the new construction estimate is the final figure and that VANOC has formally requested an extra $55 million each from the federal and provincial governments to cover the shortfall.

The provincial and federal governments have already committed $310 million each toward Olympic construction costs.

Any cost over-runs are supposed to be paid for by the provincial government.

The province has already said it thinks the Games can be completed within a $139 million contingency fund it created to cover cost over-runs.

Furlong stated that the organizing committee is "determined not to return to the taxpayers of Canada for additional public funds to complete the venue program."

"It is clear that until venue construction is completed in 2008 there will continue to be the risk of unforeseen cost increases. Our pledge to taxpayers is to limit their investment in these venues to $580 million," Furlong added.

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