Warsaw: National Stadium mismanagement causing huge overspending

source: PAP / StadiumDB.com

Warsaw: National Stadium mismanagement causing huge overspending Supreme Audit Office claims Poland’s most expensive stadium may have gone well over budget because of improper supervision during works ahead of Euro 2012. Formally the stadium is… still under construction.

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Poland’s Supreme Audit Office (NIK) reports that the country’s sports ministers failed to properly supervise the centrally-funded Stadion Narodowy (National Stadium). This caused severe overspending, potentially in excess of 30%.

Initially contracted at PLN 1.528 billion (€350m / $450m), the stadium may end with a price tag of over 2 billion. The initial contract doesn’t include additional works connected to thousands of design alterations implemented during construction.

All three general contractors had to fold after the project, claiming they were only paid for initial works, not for the additional ones. They now fight in court over PLN 460 million (€110m / $145m) for tasks not included in their contract that they had to carry out.

Stadion NarodowyPhoto: Artur Malinowski (cc: by)

In return NCS (the company overseeing the construction process) sued general contractors for PLN 150 million of bank guarantees for failing to deliver the stadium in time. Contractors argue they couldn’t have delivered it with the immense number of design changes.

Both mentioned cases are now in court and until they end the stadium is formally not delivered as a project.

Stadion Narodowy’s initial contract also doesn’t include some furnishing expenses, like the PLN 36 million (€8.5m / $11.3m) catering facilities. According to the Supreme Audit Office, this sum should have been covered by a private operator of these facilities.

However, NCS argues there was no private entity willing to take up catering services, while the stadium had to be fully equipped before handing over to UEFA.

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