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Why the Spurs stadium project ran into trouble

When I look at which other clubs friends support, Tottenham Hotspur comes top of the list. I have therefore taken a particular interest in the delays to their new stadium.

Let me say first that I think that Spurs made the right decision in going ahead with this project and rebuilding the stadium at its existing location. However, they were not realistic about the delays that invariably arise in big construction projects (think Crossrail) and they have not been sufficiently up front with their fans about the extent of the delays.

3,800 workers, some of them on premium rates, have been working on the project, but it may still not be ready for a game on Boxing Day. There is a serious skills shortage in the construction industry which is pushing up pay rates and leading to delays and cost overruns. There are just not enough workers in London with the right skills and of sufficient calibre. Moreover, the Spurs site is in competition with Crossrail. Electricians on the site are being paid double the normal rate, at up to £400 a day.

The problems really date back to the financial crisis when the industry lost nearly half a million workers as projects were put on hold. There are still 257,000 fewer construction workers in the UK than there were before the crisis. Some 27 per cent of construction workers in London are from the EU. There has not really been a Brexit effect yet, but that may happen depending on the terms of any deal. Most top construction companies are losing money.

The model that Tottenham Hotspur adopted for the project was not the best in the circumstances. Construction company Mace was employed as project manager responsible for overall delivery, but with no control over the more than 100 contracts that the club negotiated itself. Why do it this way? It was a means of driving the price down while hopefully keeping overall control.

The most difficult work at White Hart Lane has been the installation of the glass roof that contains 287 sections and 800 metal and acoustic panels. It accounts for nearly half the labour time but work on it could not start until the stadium was completed. The roof is now all but complete, as is the bowl of the arena.

However, it emerged in August that there were wiring problems, including the 950 specialised lights that help the grass grow on the pitch, necessary in such an enclosed stadium. (I have problems with the lawn in my walled garden!) Not only did some have to be reinstalled, but the fire detection contractor found more than the usual number of electrical wiring faults. Spurs are proud of the new lighting structure, but its cutting edge nature may not have made it easy to install: Revolutionary pitch technology

These problems emerged at the most labour intensive phase when the multitude of workers were literally getting in each other's way. I first did some work on the construction industry back in the 1980s and it was clear that there were structural problems with the system of sub-contracting. Risk is often passed down to the sub-contractors who often have cash flow problems and can be tempted to cut corners. Quite often they go bust, although this can be a reorganisation device.

Spurs chairman Daniel Levy has admitted that 'the consequences of not being able to open our new stadium have been immense.' There is no doubt that it will be superb when it is finished. However, it could slow down the progression of the club into Europe's elite. North London rivals Arsenal were held back for years by the cost of the Emirates. It is always possible that there will be new owners at Spurs.

Comments

  1. Do you really believe that the stadium was delayed because of the lighting rigs for the pitch? They have worked perfectly.

    The delay is due to the fire system, but then I guess you wouldn't be able to get the line about your garden into the article if you had just stuck to the facts.

    The decision to use Mace as the project manager was because no company would take on the build and give guarantees unless Spurs spent two full seasons away from WHL, which Spurs didn't want to do. It wasn't to reduce costs, it was to take the risk on the club as no contractor would take that risk. Yes, that has backfired, but Spurs probably still think it was worth the risk.

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