Posted by Jon
OK, it’s not the place of this blog to be in any way political. But this morning’s news from UK Culture Secretary Tessa Jowell that:
OK, it’s not the place of this blog to be in any way political. But this morning’s news from UK Culture Secretary Tessa Jowell that:
“The expected cost of the 2012 London Olympic park has risen 40% since the games were won in July 2005”
seems directly relevant to bid and proposal professionals, resulting as it does from the UK’s major bid to the International Olympic Committee. Apparently:
“Ms Jowell told the Commons culture, media and sport committee the rise was partly due to a doubling in the price of steel and also a decision to revise transport costs to take into account inflation in the years to 2012”
Yep, like competent bid staff don’t build in contingency for raw materials price increases. Or inflation. Honestly, I ask you…
But hold on a moment. Let’s just have a little look on Google for a website showing steel prices to test the claims. Amazing how easily one can find proof that steel prices have indeed increased since the bid was won – but only by between 13% and 32%, depending on what type you’re buying (and following a fall of up to 10% in the month prior to the bid decision).
It gets better (or, rather, worse). The overrun:
But hold on a moment. Let’s just have a little look on Google for a website showing steel prices to test the claims. Amazing how easily one can find proof that steel prices have indeed increased since the bid was won – but only by between 13% and 32%, depending on what type you’re buying (and following a fall of up to 10% in the month prior to the bid decision).
It gets better (or, rather, worse). The overrun:
“also included an extra £400m to pay “delivery partner” CLM to make sure the games came in on budget and on time.”
The bid was priced at £2.4bn (close on $5bn). Prices increased to £3.3bn. And they then decided to pay £400m to make sure the games came in on budget?! Horse? Stable door?
“The extra £900m cost was likely to be met by London council tax payers and lottery funds, Ms Jowell suggested.”
That’s OK, then.
Let’s have a quick vote. If a bid in your organisation went this badly wrong, this quickly, would you expect those accountable to keep their jobs? Especially if their explanations were so blatantly, lamentably flawed?
Let’s have a quick vote. If a bid in your organisation went this badly wrong, this quickly, would you expect those accountable to keep their jobs? Especially if their explanations were so blatantly, lamentably flawed?
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