20.05.16
Design changes in Northern Line extension could hike costs by £240m
The cost of the Northern Line extension to Battersea Power Station could increase by £240m because of the need to redesign part of the station.
Last month, Transport for London’s (TfL’s) Finance and Policy Committee met to discuss the need to approve supplemental agreements with the developer after the design became “very different from that originally intended and contracted”.
Yesterday, the Evening Standard reported that the changes included a new ‘station box’ to allow passengers to emerge directly from the station into the Prospect Place complex of apartment buildings, designed by Frank Gehry.
TfL is now in talks with the consortium of three Malaysian companies, SP Setia, Sime Derby and the Employee’s Provident Fund, to try to decide who will meet the changing costs, which have not been calculated but could add £240m to the final bill.
David Hughes, director of major programme sponsorship at London Underground, said: “Changes have been made to the proposed development and the new Tube station beneath. These design changes will lead to an increase in the overall cost of the project.
“We are in constructive discussions with the developer about how this cost will be attributed. We are now working with Battersea Power Station to agree the necessary changes to the contractual arrangements between us to reflect these revised designs.”
The changes could also require a revision of a £500m contract awarded in 2014 to Ferrovial Agroman Laing O’Rourke JV in order to cover more work.
A Battersea Power Station spokesperson added: “Provision for design changes was made at the outset, given the scale and complexity of this major infrastructure project. TfL and BPS are working collaboratively on those designs and any related costs.”
(Image c. JLL Residential)
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