Nato and BAM sign truce on troubled HQ

BAM Alliance, the consortium building Nato’s new headquarters in Brussels, and the Belgian Ministry of Defence have reached an agreement on BAM’s claim for additional works and services: the figure is €85m.

The agreement also sets out a new completion for the works, which is now summer 2016.

BAM Alliance, led by Netherlands-based contractor Royal BAM Group, began work on the new headquarters opposite its current headquarters in October 2010. It was hit by delays and cost overruns.

The modern glass and steel complex was designed by SOM and Assar Architects.

The original contract value for BAM Alliance was approximately €460 million, although the total construction cost, including design, security, and related services, was higher, at €750m, according to Nato.

Claims, contingencies and issues relating to Nato governance pushed the cost to €1.1bn, Nato said.

BAM said in a statement on 5 December that the €85m has no effect on the company’s previously published profit outlook for 2014.

"BAM is satisfied that this agreement provides a good basis to complete the project within the newly agreed term (mid-2016) and budget," the company said.

Nato also welcomed the deal. "The negotiations were conducted professionally," it said, "and the project now has a clear way forward to completion in 2016. Allies will maintain their careful oversight of this important project, led by the Belgian authorities."

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