T5 more costly than expectedThe budget allocated for the mechanical and electrical facet of the new Terminal 5 construction at London's Heathrow International airport has gone over budget by such an amount as to warrant serious restructuring.
As of now, the mechanical and electrical contracts have exceeded their expected budget by ₤100 million, with man-hours 50% more than anticipated or budgeted. The initial estimated figure for the mechanical and electrical man-hours on the project was 6 million, but this has inflated too, to 8.8 million hours.
These reports come from a report in the magazine 'Contract Journal', who quotes a source involved with the project as saying, 'There are some huge numbers there in terms of cost overruns. Every spark is being paid £21-an-hour, plus there are the incidental costs of employing people, so the real price to the client is around £30 to £35 an hour. Multiply that by nearly 3 million man hours over budget and you're talking a lot of cash.'
BAA maintains that the terminal is on schedule and on budget, but acknowledges that adjustments must be made in the mechanical and electrical section. 'Changes to the scope of work have resulted in changes to resource requirements. However, over the next few weeks the number of workers on site will reduce in line with a planned rundown of resources,' said a BAA spokesperson.
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