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

3 Comments

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
http://fairfaxmedia.newspaperdirect.com/

Posted by Elizabeth Kerr

3 Comments

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.

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### 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’)

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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.

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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

15 Comments

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

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### 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

1 Comment

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

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

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### 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

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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

25 Comments

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
700?
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

3 Comments

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