Construction businesses getting welcome boost from 2012 Olympics

The 2012 Olympics has created hundreds of vital contracts for embattled construction firms in the UK.

The Olympic Delivery Authority (ODA), the agency tasked with the job of building the infrastructure for the Olympics, indicated that the construction industry has received a £5 billion boost from work for the games. It also said that 68% of the 1,036 firms to have won contracts are small to medium-sized businesses.

The construction sector has been particularly hit during the recession, and has reported negative growth for 18 consecutive months. It is believed that works for the Olympics will play an important part in aiding the industry's recovery. Olympics Minister Tessa Jowell commented:

"These businesses stretch the length and breadth of the UK. They are in turn creating thousands more supply chain contracts boosting the economy at a time when it is needed the most."

One area of concern for small firms, though, has been that their services will be underpriced because of increased competition for contracts. While the ODA is said to have offered reasonable contracts, it has admitted that it has benefitted from lower inflation for raw materials and the increased availability of labour.

11/09/09