Tag Archives: Guaranteed maximum price contract

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


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

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

Posted by Elizabeth Kerr


Filed under Architecture, Construction, Design

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

There’s more, really?

### ODT Online Mon, 18/05/2009 – 6:34pm.
Comment by gplusa on Stadium price blowout
Don’t forget to add the following items to the $217 million: design fees, building consent fees, resource consent fees, the contractor’s profit, contingency sums, overheads and general site costs (such as the new fence currently being erected). Don’t put down the calculator just yet.


### ODT Online Tue, 19/05/2009 – 9:53am.
Comment by MikeStk on and …
and if you read the contract apparently we’re also on the hook for a whole bunch of insurance – sadly someone carefully removed all the numbers from the ‘public’ version of the contract – apparently we’re not trusted to know how much the thing is really going to cost (now that it’s signed there is no ‘commercial sensitivity’)


In reply to Roller

### ODT Online Mon, 18/05/2009 – 12:20pm.
Comment by MikeStk on I agree
I agree – but would like to point out that that $217M figure doesn’t include the cost of purchasing Carisbrook (likely to be $10M or more if it includes the forgiving of the ORFU’s $2M debt to the city). Nor does it include the cost of realigning SH88 and building their flying roundabout – another $10M.


Despite pending court action it is asserted that construction of the stadium is due to start in mid-June…

### stuff.co.nz Last updated 05:00 14/05/2009
2-week delay ‘risk to stadium’
By Mark Hotton – The Press
Delays in building Dunedin’s $198 million stadium could cost $4.5m, the city council says.
Read more

Posted by Elizabeth Kerr


Filed under Architecture, CST, Design, Economics, Hot air, Politics, Project management, Site, Stadiums

Latest on contract + Second injunction

How are you measuring support Mr Chin…

### ODT Online Tue, 28 Apr 2009
Council signs stadium contract
By David Loughrey
Dunedin Mayor Peter Chin, deputy mayor Syd Brown and Carisbrook Stadium Trust chairman Malcolm Farry yesterday signed a contract with Hawkins Construction to begin building Dunedin’s stadium.
Read more


### ODT Online Tue, 28 Apr 2009
City people urged to ‘Love Dunedin’
By Dene Mackenzie
Dunedin residents will be urged later this year to start supporting the city and its many attractions as part of a campaign being driven by Tourism Dunedin and local tourism operators.
Read more

Posted by Elizabeth Kerr

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Contract signed

### Radio New Zealand News Updated at 4:08pm on 27 April 2009
Dunedin mayor signs contract to build stadium
Dunedin Mayor Peter Chin has signed a contract for the construction of the city’s stadium. The $165 million contract with Hawkins Construction means work can start at the Awatea Street site in May.
RNZ Link


### Channel 9 News April 27, 2009 – 7:24pm
Legal Contract of the Forsyth Barr Stadium signed
The legal contract between the Dunedin City Council and Hawkins Construction for the construction of Forsyth Barr Stadium at University Plaza was signed this afternoon. Mayor Peter Chin put pen to paper during a DCC Extraordinary Meeting today.
Video Link


Construction Contract for the Proposed Forsyth Barr Stadium at the University Plaza – Chief Executive Jim Harland’s report to Dunedin City Council (dated 20 April 2009).

Posted by Elizabeth Kerr


Filed under Architecture, Business, Carisbrook, Construction, CST, DCC, DCHL, DCTL, Delta, Democracy, Design, Economics, Geography, Highlanders, Hot air, Media, Name, New Zealand, NZRU, ORC, ORFU, People, Politics, Project management, Property, Site, Sport, Stadiums, STS, Town planning, University of Otago, Urban design

The hive of industry…

### ODT Online Sat, 25 Apr 2009
Big plans for stadium opening
By Chris Morris
Workers will move on to the Awatea St, Dunedin, site within weeks to begin construction of the $198 million stadium, after a High Court judge yesterday dismissed Stop the Stadium’s last-minute attempt to derail the project.
Read more

### ODT Online Sat, 25 Apr 2009
Councillors swing in behind stadium
By Chris Morris
Dunedin city councillors staunchly opposed to the $198 million Otago stadium have thrown their support behind it, saying it is time for the city to “move on”.
Read more

Comment at ODT Online by MikeStk
Sat, 25/04/2009 – 10:17am
Now we’re hiring 700, last month it was 600 – where will the money for this come from? Simple math implies the $198M will soon be $230M.

Posted by Elizabeth Kerr


Filed under Architecture, CST, Design, Economics, Geography, Hot air, Media, Politics, Site, Stadiums, STS

Industry player on GMP Contract

### ODT Online Thu, 23/04/2009 – 7:31pm.
Comment by gplusa on Coming Clean ?
A timely reminder to all who seem to think that the stadium will be built for a total cost within the GMP (Guaranteed Maximum Price). This is not true. What the average person believes a Maximum Price to mean, is not what the phrase means in this contract. For the benefit of those who have missed it previously, we can repeat the problem again.
ODT Link

Link to CEO Report

Posted by Elizabeth Kerr


Filed under Architecture, Design, Economics, Hot air, Media, Politics, Site, Stadiums

Contract offer extended

### ODT Online Wed, 22 Apr 2009
Injunction decision expected Friday
By David Loughrey
A High Court decision on an injunction barring the Dunedin City Council from proceeding with the planned Awatea St stadium is expected on Friday.
Read more

Posted by Elizabeth Kerr

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D Scene: Judge weighs up consultation concern

### D Scene 22-4-09 (page 6)
All ready for stadium finale
By Michelle Sutton

The High Court will focus on consultation with Dunedin ratepayers when it decides the fate of Otago’s $200 million stadium tomorrow.
{story continues}

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

What councillors said at Monday’s key meeting:
Neil Collins: “We need to have facilities that we are proud of and this will be one.”
Michael Guest: “We should thank Malcolm Farry, and the Mayor. It’s a wonderful project for Dunedin.”
Paul Hudson: “We haven’t communicated this well enough for our ratepayers.”
John Bezett: “You have to understand a lot of information has been given to the council that we haven’t been able to release.”
Teresa Stevenson: “As the community have said we don’t want it, we have become more firm in our view as council and have been fixated on the stadium.”
Dave Cull: “I think the issues are both funding and the public ownership. They are both financially problematic.We are rushing this to put this through. We are making decisions without detail.”
Andrew Noone: “People want us to make a decision. Dunedin has a history of punching above its weight.”
Chris Staynes: “We have an obligation to listen and we should be waiting until we have had the submissions.”

YES Peter Chin, Syd Brown, Bill Acklin, John Bezett, Neil Collins, Michael Guest, Paul Hudson, Andrew Noone, Richard Walls and Colin Weatherall
NO Dave Cull, Chris Staynes, Teresa Stevenson, Kate Wilson

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StS: blatant fundraising mode

Home at their website…
StS Link


Dear Members

You will know, by now, of the High Court injunction we have taken out against the DCC, in a last minute attempt to get them to listen to the submissions on the Long Term Council Community Plan (LTCCP) before signing the contract with Hawkins Construction.
Read more


StS emailed members this afternoon with the same message. StS didn’t tell members before this that everything “went” on the Town Hall meeting.

What no ability to seek sponsors. What no ability to fundraise in advance, not after the event. How many months has StS had to collude or collide with ‘money’.

StS reaches new heights. Mind you, I suspect it has a $$$$$meaty advance from somewhere to get to Court, Thursday. It’s after the hearing that hurts.


Filed under Economics, Politics, STS

UPDATED Contract approval, pending…

…outcome of interim injunction.

According to ONE News.
STS application for injunction to go to High Court at Christchurch this Thursday.
Farry saying bulldozers poised…well, he would.
Full coverage of today’s meetings in ODT tomorrow.


### Radio New Zealand News Updated at 5:48pm on 20 April 2009
Council approves stadium contract pending hearing
The Dunedin City Council has approved a construction contract for a new enclosed stadium, pending the outcome of a court hearing on Thursday.
Read more


### ONE News Published: 2:24PM Monday April 20, 2009
Source: Newstalk ZB
Dunedin council to fight for stadium
The Dunedin City Council will fight a group seeking a High Court injunction against the planned stadium.
Read more


### TVNZ News Updated 18:48 Monday April 20, 2009
Source: ONE News/Newstalk ZB
Council votes to sign stadium contract
The Dunedin City Council has voted to sign a contract to build the controversial stadium, but there is still a hurdle to jump.
Read more + Video


### Channel 9 News Apr 20, 2009 – 7:16pm
Eleventh Hour Attempt To Stall The New Stadium
The debate over the proposed Otago Stadium has reached a new level.

Posted by Elizabeth Kerr


Filed under CST, Economics, Geography, Hot air, Inspiration, Media, Politics, Site, Stadiums, STS

Injunction: Dunedin City Council response

### ODT Online Mon, 20 Apr 2009
Council responds to STS injunction
By David Loughrey

The Dunedin City Council has surfaced from its closed door meeting to announce its response to Stop the Stadium’s court injunction, designed to stop the council from agreeing to sign a contract to build the project.

View resolutions and read more ODT Link

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The stadium contract, ODT

Updated post.

### ODT Apr 18, 2009 (page 3, print and digital editions)
Summary: Main provisions of the contract

Project Manager:
Arrow International projects director Lale Ieremia, working with project delivery team.

Contractor’s representative:
Hawkins Construction representative.

HOK, Sport and Event and Venue Pty Ltd and Jasmax Ltd.

Quantity surveyor:

Project control group:
Representatives from Hawkins Construction, the Carisbrook Stadium Trust, Mr Ieremia, HOK and Jasmax, Rawlinsons.

The contractor is required to construct and complete the new Otago stadium for no more than the guaranteed maximum price (GMP) by August 1, 2009. The contract provides for permitted adjustments to the completion date: eg any scope amendments directed by the project manager.



### ODT Online Sat, 18 Apr 2009
D-Day looms for Dunedin stadium contract
Dunedin City councillors will decide on Monday whether to vote on signing a construction contract for the city’s new stadium after opponents filed an injunction.
Read more

Posted by Elizabeth Kerr


Filed under Architecture, CST, Design, Economics, Geography, Media, Site, Stadiums

Xmas, for a little while

### ODT Online Sat, 18 Apr 2009
Injunction threat hits stadium
By Allison Rudd and Elspeth McLean

In an 11th-hour bid to derail Otago stadium construction plans, the Stop the Stadium group late yesterday sought a High Court injunction barring the Dunedin City Council from next week signing a construction contract.
Read more


### ODT Online Sat, 18 Apr 2009
Stadium meeting may be last play in grim contest
By David Loughrey

The scheduled meeting of the Dunedin City Council on Monday – thrown into disarray last night by Stop the Stadium’s application for a High Court injunction – could still yet be the final play of five years of angry debate, allegation, claim and counter-claim over the city’s proposed stadium.
Read more


Copies of the papers seeking the injunction including the sworn affidavits were forwarded to What if? late last night.

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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.

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

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Stop The Stadium to Court

According to Channel 9 news tonight Stop the Stadium has lodged a claim for a High Court injunction…to ‘stop the stadium’.

### ODT Online Fri, 17 Apr 2009
Stadium fight going to High Court

Opponents of the proposed $200 million Dunedin stadium have taken the fight to the High Court.
Read more


See post Whatever next? Available processes…
See comment on StS committee line up changes: MORE


Filed under Hot air, Inspiration, Politics, Stadiums, STS

StS Easter newsletter

From: sts-bounces@taniwha.com [mailto:sts-bounces@taniwha.com] On Behalf Of Stop the Stadium Announcement list
Sent: Saturday, 11 April 2009 8:38 p.m.
To: sts mailout
Subject: [sts] Easter newsletter/Submissions due this Wednesday

Dear STS Members.

This is just a brief reminder to those of you who may not yet have sent in a submission on the stadium. Please do this now, as the closing date is next Wednesday.

The submission process is easy, and you will find instructions in our last mailout which has an already-prepared form submission attached. All you have to do is print this out, sign it, and send it in. Or you can make an electronic submission – see the DCC’s website. If you have any difficulty phone Bev at 4776861. These submissions are very important.

The momentum since the big meeting continues to gather, and it must be obvious to any fair-minded and objective observer that the signing of an irrevocable contract with so many issues outstanding is completely unacceptable (are you listening, Rodney Hide?). Meanwhile the stadiumites are sounding increasingly desperate, with ever-more –bizarre uses for the stadium being floated daily. The latest wheeze is to claim that the stadium is not a stadium at all, but, among other things, “the world’s largest marae”. Featuring at the new marae will be motocross championships, polo tournaments, and all-in wrestling (plus, maybe, the odd rugby match). And, in a further, and extremely ingenious move, the marae will double-up as a “cardiac rehabilitation centre” – presumably when the place is not full of horses, candlelight-carol-singers, skateboarders, and, believe it or not, swimmers! The Pope, unfortunately, is still not answering the phone.

No. We are not making this up. Check with the Carisbrook Stadium Trust (Ph 4792823), or just phone Mr Farry, who will be pleased to fit in anything you might care to nominate: hang-gliding, if you like, or organic gardening, duck-shooting, camel-racing, tiddlywinks – the big marae can handle them all.

Don’t forget the public meeting next Sunday, 7pm, Caversham Presbyterian Church Hall.

Thanks for all your efforts so far.

Bev Butler, and the STS Committee.


South Dunedin city councillors have been invited to attend the public meeting at 7pm next Sunday, April 19, at Caversham Presbyterian Hall, 61 Thorn Street.

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