Cost-saving measures have been introduced to the Thames Tideway Tunnel project, a report by the project’s holding company has confirmed.
Tideway has cited a number of “complex engineering challenges” in its decision to cut costs while the report, published by Bazalgette Holdings Group, said it has identified “several significant cost pressures” in the programme.
These include previously reported engineering challenges at Blackfriars; the cofferdam construction at King Edward Memorial Park, together with the associated programme prolongation at that site; cofferdam construction at Albert Embankment and various challenges at shafts across the east area sites.
The challenges have resulted in contingency funds being “substantially eroded”.
To mitigate these cost pressures, Tideway has begun to implement cost saving measures in partnership with its contractors.
The report said it was too early to conclude the extent to which these measures will mitigate the cost pressures, and an update will be provided on these and the cost savings programme in Tideway’s March 2019 annual report and accounts.
The total project costs for the six-month period to 30 September were £325.3 million which brings the total cumulative cost to £1.4 billion.
Recent media reports suggested the cost of the project has soared, a claim Tideway has denied.
A spokesperson for Tideway said: “There have been a number of complex engineering challenges and risks to overcome in the early stages of the project.
“With these behind us and having put in place several measures to reduce cost, our budget is intact.
“Tunnelling for the project started last week from our site in Battersea and we are set to complete the project on schedule and to budget.”