Tag Archives: GMP contract

SUNK Stadium: TOO MUCH ratepayer money going west STOP

Garrick Tremain – 11 May 2012


The point is $224 million is not the TRUE COST. It is FAR HIGHER. Dunedin City Council must stop all OBFUSCATION. Open the books to a full independent forensic audit of the council and related entities NOW.

Meantime, close the stadium to stem the losses.

### ODT Online Fri, 11 May 2012
Budget blowout pushes stadium cost to $224m
By Chris Morris
The final cost of the Forsyth Barr Stadium has risen to $224 million, after independent auditors uncovered a budget blow-out of more than $8 million, it has been confirmed. The findings showed the stadium’s capital cost had risen by $8.4 million, from $198 million to $206.4 million. Interest accrued during the stadium’s entire construction period, as loans began to be drawn down, also hadn’t been included in costs.

The $8.4 million overspend meant costs exceeded budgets by 4.2%.

The PWC review did not seek to apportion blame, but findings had been passed to council chief executive Paul Orders, who told reporters he would study them “coolly and calmly”.
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Posted by Elizabeth Kerr

79 Comments

Filed under Architecture, Business, Construction, CST, DCC, DCHL, DVL, DVML, Economics, Events, Hot air, Media, ORC, ORFU, People, Politics, Project management, Property, Site, Sport, Stadiums, STS, Town planning, Urban design

DScene: What’s a nice wee loan between friends

Councillors spoken to by D Scene were unaware of the loan.

### DScene 15-6-11
Butler questioning $1.4m loan for stadium seating (page 3)
Former Stop the Stadium head Bev Butler is questioning a $1.4m commercial loan for temporary seating at the [Otago] Stadium. Dunedin City Council (DCC) council-controlled management company Dunedin Venues Management Ltd (DVML) borrowed money for east stand temporary seating. Butler questioned whether DVML had the authority to borrow the money, as the venues company’s Statement of Intent noted spending of more than a million dollars by DVML needed DCC approval.
{continues} #bookmark

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Posted by Elizabeth Kerr

3 Comments

Filed under Architecture, Construction, Design

Hear Ye!

This comment deserves an escalation:

Phil 2010/02/22 at 11:17am

Some people will wave around the $130 million GMP contract as evidence of the cost for construction. It’s already been established that the published contract excluded several significant cost items, estimated at around $30+ million. All P&G costs, the contractor’s contingency sum and, best of all, the contractor’s profit margin, were all specifically excluded from the published price. There’s been mention that those items were later added in, with no adjustment to the original price. Suggesting that Hawkins Construction are doing this contract for free. As, of course, we all believe. However, unlike the original “exclusion” contract, this apparent revised contract seems to be missing from public view. Even the ODT tried, and failed, to get an answer to the question of contract exclusions.

In the current atmosphere of silence, draw your own conclusions.

Preliminary and General (P and G) costs relate to both a contractor’s on site and off site costs.

On site costs can be for site sheds, canteen, telephones, vehicles, tools and plant, management, insurance, surveying set-out costs, scaffolding, hoardings etc.

Off site costs typically relate to head office costs such as rent, staff salaries, insurances, ACC, and accounts.

Phil probably has a better working description of “P&G”.

Posted by Elizabeth Kerr

2 Comments

Filed under Construction, Politics, Project management, Stadiums

BammBamm says

At the STS website, a conundrum appeared early this morning, about the stadium piles. True or false. Does this associate with the rumour last year that steel had already been stockpiled for the project…

Anyway, BammBamm says:

“The concrete supports are prefabricated, pre-stressed castings that have taken months to cast, and produce for the stadium foundations. You can hear them being driven in daily. Many of you will not realise that to obtain full structural strength, that the concrete needs to cure. Usually Portland cement is around 8 months. So, using that logic, you will find that the pillars were cast, cured, assembled and transported before the Council made a ‘decision’ on construction of the stadium itself.”
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Hiccup: Dunedin City Council agenda for 18 May

A meeting of the Dunedin City Council will be held on Monday 18 May 2009 in the Council Chamber, Municipal Chambers, 2pm.

Note this item on the Agenda:
20 CONDITION ON UNIVERSITY LAND SALE AGREEMENT
Report from the General Manager Finance and Corporate Support (Athol Stephens).
Refer to pages 20.1 – 20.3.

Agenda – Council – 18/05/2009 (PDF, 28.0 kb, new window)

Report – Council – 18/05/2009 (PDF, 691.5 kb, new window)
Condition on University Land Sale Agreement

****

From Athol Stephens’ report:

SUMMARY
One of the conditions of the sale of land to the University is that the vendor (the Council) resolve (by full meeting of Council) by 30 June 2009 to proceed with the construction of the proposed multi-purpose stadium. While the Council has passed many separate resolutions, each relating to a particular aspect of the approval process of the stadium, there has not been an “umbrella” resolution for the stadium as a whole.

A resolution along those lines would give effect to Condition 5C of the University Land Sale and Purchase Agreement.

RECOMMENDATIONS
That the Council proceed with the construction of a multi-purpose stadium in the Awatea Street precinct, in accordance with all previous resolutions on the proposed stadium.

DISCUSSION
[excerpt] For the sake of technical accuracy in complying with the special conditions of the Sale and Purchase Agreement it has been recommended by Council solicitors that a specific resolution to proceed with the construction of the proposed multi-purpose stadium be passed. To date, no such “umbrella”-type of resolution has been passed. It is recommended that this be done at this Council meeting.

****

Translation… The council’s land purchase agreement with university can’t be brought into effect without this formal resolution.

****

### ODT Online Mon, 18 May 2009
DCC set for ‘umbrella’ stadium vote
By David Loughrey

The Dunedin City Council is set to vote on an “umbrella resolution” to go ahead with the Forsyth Barr Stadium, required as part of a contract to sell land to the University of Otago at the site.
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D Scene: Basil Walker's small victory

### D Scene 13-5-09 (page 3)
Lifting the lid
By Ryan Keen

[Basil Walker’s] challenge in the High Court at Dunedin has led to Dunedin City Council chief executive Jim Harland revealing in an affidavit the penalty clauses that exist in the so-called Guaranteed Maximum Price contract signed with Hawkins Construction.
{continues}

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### D Scene 13-5-09 (page 6)
Otago Stadium: Construction contract fineprint revealed
Delays will sting
By Michelle Sutton

Otago’s stadium project faces a multimillion-dollar blowout if the looming June 1 construction deadline is missed, a High Court affidavit reveals.

Mr Harland’s affidavit was sworn at Dunedin on May 5, a day before [Basil] Walker sought an urgent interim injunction blocking ORC’s contribution claiming its processes were flawed.
{story continues}

### D Scene 13-5-09 (page 6)
Edgar’s warning

Stadium supporter and former longtime Dunedin-based businessman Eion Edgar warns rates could soar if the project doesn’t happen.
{story continues}

D Scene 13-5-09 (page 6)
DCC counsel Frazer Barton is sending a memorandum to the High Court for $12,000 to $13,000 of costs against Stop The Stadium.

Other stories:
Word of the Week: injunction (page 9)
Mr Generous isn’t slowing down: Ryan Keen interviews Eion Edgar and finds the sort of money he’s giving to the stadium (page 9)

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DCC LTCCP: Just Bev and Pete

UPDATED

This afternoon “Stop the Stadium” turned up to make its oral submission to the Dunedin City Council hearings panel.

Bev got herself into hot sling mode and lost all ground. By contrast, Peter Attwooll, her husband, read out an email StS had received recently. He did so nicely and clearly.

No violins though. StS hadn’t sought permission to reveal the writer’s name so wouldn’t declare it when asked. This wasn’t very consultative, we didn’t think.

We were told StS had received many calls and messages lately by people upset by council signing the GMP contract for the stadium.

I noticed no StS co-committee or paid-up members were there to support the two. In fact, only myself and one other woman submitter were in the public gallery to witness the loss of rope. ODT’s reporter was at the media desk.

It sounded like the last hurrah. Hope StS isn’t keeping back donations received for the High Court action as a kitty towards standing in the local body elections next year.

Now I’m being dramatic. They seemed shorter somehow.

****

### ODT Online Thu, 7 May 2009
Heated exchanges as Butler fronts DCC
By Chris Morris and David Loughrey

The fallout over the $198 million Otago stadium continues, with vitriolic exchanges between Stop the Stadium president Bev Butler and city councillors during yesterday’s Dunedin City Council annual plan hearing.
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