LONDON 2012 – STATEMENT REGARDING LONDON GAMES SECURITY CONTRACT

This agreement comprises a total adjustment of £85 million covering the following elements: 

•  G4S has agreed to pay all the additional military, police and other step-in costs reasonably incurred by LOCOG, in total about £48 million; 

•  G4S has agreed a £37 million reduction in their project management and operational costs.  This is made up of a significant reduction in the charges for project management – £31 million and an adjustment to address concerns over the scheduling of the workforce to align operational costs with workforce delivery – £6 million.

All figures stated above are exclusive of VAT.

The settlement ensures that the taxpayer's interests have been fully protected in compensating for the difficulties experienced by G4S' shortcomings, while at the same time recognising that G4S ultimately provided over 80% of the man-guarding hours it had contracted to supply over the course of the pre-Games, Games-time and post-Games periods.

Commenting on the settlement, Neil Wood, LOCOG’s Chief Financial Officer said: 

“We are pleased to have reached an agreement that protects taxpayer’s interests by reducing the payment due to G4S by £85m.  The savings arising from this settlement brings the total savings to the public purse from the LOCOG venue security budget to £102m compared to the position in December 2011.  We would like to thank the Military and the Police for their exceptional and outstanding support during the Games in providing a robust, effective, professional and friendly security operation. We would also like to thank the G4S guards who worked alongside the Military, the Police and the Volunteers to deliver a safe and secure Games in spite of the high profile challenges faced by the G4S Group.

The Home Office has been consulted on the settlement and fully supports the position reached between LOCOG and G4S.

LONDON  2012