Tag Archives: GMP

Farry’s CST overspends budget by 46%

They spent $5.4 million on their own activities, as opposed to a budget of $3.7 million.

Comment received from Rob Hamlin
Submitted on 2012/05/12 at 3:47 pm

The critical part of the PWC report is given below. A deeply buried nugget on page 28 (of 43). As PWC note, the overruns excluding interest amounted to 206.4 – 198 = 8.4 million dollars – an overrun of around 4%. Which as PWC point out, is not that bad by the standards of such things.

However, 20% of this total is accounted for by budget overspend related to the Carisbrook Stadium Trust’s own internal activities. They spent $5.4 million on their own activities, as opposed to a budget of $3.7 million, an overspend of 46% of budget – as opposed to the rest of the project, which overspent by 3% once the CST’s contribution to the overall overspend is removed.

In addition, the reasons for the overspend in the other areas is covered in some detail in the other sections of the report and are fairly easy to understand (if not necessarily to agree with). The CST’s blowout contribution is different, with no real reason for this overspend appearing in the passage below. They were given a budget – they blew it – Why? PWC is silent – read on…

Posted by Elizabeth Kerr

3 Comments

Filed under Business, Construction, CST, DCC, DVML, Economics, ORC, People, Politics, Project management, Property, Site, Sport, Stadiums, STS

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”.
Read more

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

Register to read DScene online at
http://fairfaxmedia.newspaperdirect.com/

Posted by Elizabeth Kerr

3 Comments

Filed under Architecture, Construction, Design

Malcolm Farry: “Embrace the vision”

### ODT Online Mon, 30 Aug 2010
Opinion: ‘News’ already in the public domain
By Malcolm Farry
A recent front page article in the Otago Daily Times highlighted items not included in the Forsyth Barr Stadium’s main construction contract. Malcolm Farry points out this information was already in the public domain and suggests the article carried unfortunate implications.

Over the past four years, I have become accustomed to being called at home by members of the public wanting a “chat” and to share their contrasting views on the merits of the Forsyth Barr Stadium project. However, these exchanges reached a new level of intensity following the Otago Daily Time’s article on August 12 under the headline “Stadium extras to cost in millions”.
Read more

-Malcolm Farry is chairman of the Carisbrook Stadium Charitable Trust.

Post by Elizabeth Kerr

14 Comments

Filed under Architecture, Construction, CST, Design, DVML, Economics, People, Politics, Project management, Site, Sport, Stadiums, Town planning, Urban design

Stadium tenders, turf + future of Carisbrook

### ODT Online Fri, 23 Apr 2010
Stadium tenders over budget
By David Loughrey
Tenders for carpentry at the Forsyth Barr Stadium have come back “significantly over budget”, a new report on the project says. Carisbrook Stadium Trust chairman Malcolm Farry said last night that meant the trust would have to go back to the market to try to negotiate a more acceptable price, something he said had been done before, successfully, during the building process.
Read more

****

The following reports will be discussed by the Dunedin City Council finance and strategy committee on Monday:

Report – FSC – 26/04/2010 (PDF, 1.0 mb, new window)
Stadium Stakeholders Group Report

Report – FSC – 26/10/2010 (PDF, 65.2 kb, new window)
Future of Carisbrook

****

### ODT Online Fri, 23 Apr 2010
Public say on Carisbrook
By David Loughrey
A thorough consultation process will soon begin on the future of Carisbrook, and the Dunedin City Council is looking to the public for “reasonably practicable” options for its future. The high level of public interest in the historic ground means public meetings will be held to help decide the matter, but a report to next Monday’s finance and strategy committee meeting said the council was keen to “avoid devoting a lot of time, energy and expense to the consideration of impractical, expensive or frivolous options”.
Read more

Posted by Elizabeth Kerr

13 Comments

Filed under Architecture, Construction, Design, DVML, Economics, Politics, Project management, Site, Sport, Stadiums

Stadium GMP clarification

In reply to Calvin Oaten.

### ODT Online Tue, 20/04/2010 – 9:16pm.
Comment by Richard Walls on Answers to your questions:

(1) Whether the turf remains part of the GMP or is taken out is subject to current commercial tender and under discussion.
(2) Half of the temporary seating is included within the $165.4m Design and Construction budget. (My understanding is that the remainder will be hired in as required).
(3) The lighting of the playing area is included within the GMP.

Post by Elizabeth Kerr

1 Comment

Filed under Architecture, Construction, Design, Economics, Project management, Stadiums

20 April Extraordinary Meeting of Council: Agenda and Report

Agenda – Council – 20/04/2009 (PDF, 13.5 kb, new window)

Report – Council – 20/4/2009 (PDF, 472.5 kb, new window)
This report identifies progress made in meeting the terms and conditions the Council has set down for construction of the Awatea Street Stadium to be known as the Forsyth Barr Stadium at the University Plaza.

The recommendations in the Report are:

1 That this report is received.

2 That the GMP, including escalation, from Hawkins Construct Ltd of $130,414,595 be accepted noting that the total project cost, including professional fees and adjusted sums is $164,012,035 and that there is an unallocated construction contingency of $1,387,865 for a total construction project cost of $165,400,000.

3 That progress in meeting the Dunedin City Council’s resolution 7 passed at a meeting held on 9 February 2009 which committed the Council to the Awatea Street Stadium project on the following terms and conditions be noted:

7a) Confirmation of Otago Regional Council funding of not less than $37.5 million – This has been confirmed by the Otago Regional Council.

7b) Satisfactory conclusion to the planning process and approval of a Plan Change by the Courts – The appellants have withdrawn their appeals to the Environment Court and the Council has declared the Plan Change operative.

7c) i) The Rates and Funding Working Party continues to identify ways in which the ratepayers contributions to the capital cost of the stadium can be reduced by $20 million providing it comes from sources other than the Holding Company – This is not a requirement to be completed before the signing of the contract.

ii) Discussion and agreement with the ORC occurs on the sharing of any external funding which reduces ratepayer costs – Discussions are underway between the Council’s General Manager Finance and Corporate Support and the Otago Regional Council’s Director Corporate Services.

7d) That Council retains the funding line in the draft LTCCP for the project – The Council has retained the funding line in the draft LTCCP for the project which is consistent with last year when the substantive consultation took place with the community of Dunedin.

7e) That a funding source to meet the $15 million shortfall in private sector funding be confirmed – The Government has agreed to underwrite the $15 million shortfall in private sector funding and discussions are underway to confirm the detail of this arrangement. The Hon Murray McCully is meeting with the Mayor, Deputy Mayor, representatives from CST and officials on Wednesday 15 April 2009 to further progress this.

7f) That the DCC instructs the CST to continue to investigate ways be either:
i) savings on the GMP budget
ii) additional funding over and above the target of $45.5 million
iii) to address the $3 million shortfall of funding from the target of $10 million, from the Otago Community Trust.
The Carisbrook Stadium Trust and its project delivery team are aware of the need to investigate ways to find the $3 million shortfall in funding from the Community Trust of Otago which has been confirmed at $7 million rather than the targeted $10 million and also continuing to raise funding over and above the $45.5 million private sector target.

Attachments
1 Hawkins Construction Ltd letter of 15 April 2009
2 Layman’s Guide to the Construction Contract from the City Solicitor

Posted by Elizabeth Kerr

Leave a comment

Filed under Architecture, CST, Design, Economics, Hot air, Inspiration, Media, Politics, Stadiums