A major building project on the site of a former Scottish steelworks is to be delayed - because of increases in the price of steel.

Work was due to start on Ravenscraig Sports Centre in Motherwell early this summer. However, rising costs have forced the development to be redesigned to keep within budget. The delay will mean construction will not start until September.

The centre, part of the wider Ravenscraig new town project, has a budget capped at £29m, with £25m allocated to construction costs.

North Lanarkshire Council hopes the centre will be used as a training facility for the 2012 Olympic Games, to be held in London, and the 2014 Commonwealth Games, to be held in Glasgow.

The centre will also be the centrepiece of the International Children's Games, should Lanarkshire win the bid to host the event in 2011.

A review of the project has found that construction costs have increased and further reviews will be carried out as the work progresses.

In a report, Lizanne McMurrich, head of community information and learning, said: "The steel frame package tenders have been received and these exceeded the available budget.

"Discussions have been held with all tendering contractors to identify the principal cost premium areas and a redesign of the steel structure is under way based on this information to reduce the costs."

The council has agreed to abandon work which would have included excavation and filling of basements throughout the site and has set up a working group to carry out the redesign.