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A senior figure close to the negotiations said CLM鈥檚 role was 鈥�80% scoped鈥� after discussions with the Olympic Delivery Authority. He added: 鈥淚t is going to be 拢100-200m, but 拢200m is nearer the mark.鈥�

Salaries alone should cost at least 拢82m at 2006 prices on the assumption that there are 250 people working at the delivery partner at any one time. The typical salary is expected to be 拢55,000 to attract suitably qualified candidates over a six-year period.

A final valuation is likely to be made after 90 days, once the consortium has decided the payment structure and the construction programme.

During this time, four milestones must be reached.

The first is: 鈥渕obilisation鈥�, that is, putting CLM鈥檚 back office systems and key personnel in place.

The second is assessing CLM鈥檚 relationship with the handful of contracts that have been let so far.

The third is finalising the programme for the major construction works and the fourth is making arrangements for matters arising from the construction programme.

CLM鈥檚 success in passing these tests will determine how much it is to be paid.

The negotiations are taking place against a backdrop of controversy over CLM鈥檚 appointment.

Don Foster, the Liberal Democrat culture spokesperson, has complained of Laing O鈥橰ourke鈥檚 involvement. The company is understood to have spent millions of pounds sponsoring London鈥檚 bid for the Games, but the actual amount has not been disclosed. Foster argued that this created an appearance of a conflict of interest.

Higgins said last week that when CLM and Bechtel went head-to-head as the shortlisted bidders, the former 鈥減rovided the best value for money鈥�.

CLM is made up of Laing O鈥橰ourke, Mace and CH2M Hill.

鈥� Research by Gardiner & Theobald has found that the inflation premium on output prices attributable to Olympic activity would average 0.9% a year to 2015. G&T said that the impact would be restricted to London and the South-east.