Tag Archives: Hawkins Construction

Bringing DCC councillors, staff, related entities and individuals to account, let’s get honest

The Dunedin City Council is dragging its heels, for reasons that should be made public immediately, on declaring the wayward spend that has brought the new stadium about, including the realignment of SH88 — all of which has taken the project beyond the councillors’ role required by the Local Government Act, to act prudently and conservatively with ratepayers’ money.

The councillors’ fiduciary responsibility to this community has been abandoned by thorough incompetence and deception that borders on the criminally fraudulent. This will require direct action by the Minister of Local Government, Nick Smith. There is no getting around this.

The independent review of stadium costs by PricewaterhouseCoopers is of necessity limited by its price tag of $55,000 and the instructions of the commissioning client, Dunedin City Council. Meanwhile, the ‘independent’ Otago Daily Times is prepared to sit back as a moderate, to cover tail.

In terms of “who”, he said if something “untoward” was found, “there will be accountability issues”. -Cull

### ODY Online Mon, 27 Feb 2012
Extra cost on stadium not massive blowout: Cull
By David Loughrey
Dunedin may not being facing a huge blowout in the cost of the Forsyth Barr Stadium, but it is possible people or organisations may be “brought to account” following an investigation. It emerged on Friday questions remained about the final cost of the stadium – six months after the facility was built.
Read more

Posted by Elizabeth Kerr

Leave a comment

Filed under Architecture, Construction, CST, DCC, DCHL, Design, DVL, DVML, Economics, ORC, People, Politics, Project management, Property, Site, Sport, Stadiums

‘The final cost of the stadium is … unknown.’

UPDATED

### ODT Online Fri, 24 Feb 2012
Multimillion dollar uncertainty over final stadium cost
By David Loughrey
Six months after the project finished, the Dunedin City Council today admitted it still had questions about the figure, and would fund a $55,000 independent review of the issue. Mayor Dave Cull said the amount in question was ”in the millions” but ”not in the tens of millions”. He would not speculate on what the final cost may be. A team from the Auckland office of PricewaterhouseCoopers would arrive in the city next week to undertake the review, which the DCC says will be funded “from existing DCC budgets”.
Read more + Video

****

Carisbrook Stadium Trust chair Malcolm Farry declared it had been completed on time and within budget. Mr Cull says that statement is now in doubt.

### radionz.co.nz Fri, 24 Feb 2012 Updated at 12:27 pm today
Irregularities found in stadium accounts
Dunedin City Council has appointed accountants to review the costs of the city’s new stadium because of irregularities in the project’s final accounts. Mayor Dave Cull and the council’s chief executive made the announcement on Friday morning. They say the council has identified money spent that it cannot account for so it has appointed PricewaterhouseCoopers to independently review the whole project. Mr Cull said he did not know how much the overrun was, but indicated it was likely to be millions of dollars.
Read more

****

### stuff.co.nz Last updated 12:12 24/02/2012
Probe into Dunedin stadium costs
By Wilma McCorkindale
The Dunedin City Council (DCC) had called in independent PricewaterhouseCoopers (PWC) investigators after a report tabled Monday from new council chief executive Paul Orders on the likely final cost of the stadium, Cull said. The mayor was refusing to elaborate on what aspect of Orders’ report has initiated the Council action, saying all involved with the project are under scrutiny.
Read more

****

Dunedin City Council media release

****

### ODT Online Sat, 25 Feb 2012
DCC in stadium cost bid
By David Loughrey

A “whole gamut” of parties would be interviewed. -Paul Orders

A team of independent reviewers from PricewaterhouseCoopers will arrive in Dunedin next week seeking answers to multimillion-dollar questions concerning the final cost of the Forsyth Barr Stadium. Dunedin Mayor Dave Cull yesterday announced a $55,000 review of the stadium’s final cost, amid concerns about “questions that remain unanswered”, six months after the facility was built. The review team would arrive in Dunedin from Auckland on Wednesday, and spend three weeks studying documents and interviewing “relevant parties”, including the project delivery team, the University of Otago, Hawkins Construction, Dunedin Venues Ltd and Dunedin Venues Management Ltd, quantity surveyors and others.
Read more + Video

****

### ODT Online Sat, 25 Feb 2012
Farry defends costs; Butler hails review
By Chris Morris

“We are in no doubt whatsoever that the [trust’s] agreed budget has been complied with, and there is no question about that.” -Farry

Carisbrook Stadium Trust chairman Malcolm Farry – the man who promised the Forsyth Barr Stadium would be built “on time and on budget” – insists he has delivered. That was despite Dunedin Mayor Dave Cull announcing an independent review of the stadium’s final cost yesterday, amid concerns the budget may have been blown by millions of dollars. Confirmation of the review by PricewaterhouseCoopers (PWC) was greeted as “wonderful news” by former Stop the Stadium president Bev Butler yesterday, although she hoped the examination would eventually go further.
Read more

****

### ODT Online Sat, 25 Feb 2012
Editorial: Big question still to be answered
While it most surely cannot be the intention, the latest delay in revealing the final costs of building Forsyth Barr Stadium can only lead to further speculation, innuendo and adverse publicity for the venue and the Dunedin City Council. For while it is imperative to “get it right”, from the beginning the most oft-asked questions about the project were how much it was going to cost – and who would pay. Definitive answers to these questions have been slow in forthcoming and this latest postponement will only fuel responses likely to range from resignation to frustration. This, after all, is a matter pertaining to the ratepayers and their pockets. It does not help matters that, having fended off inquiries as to these very matters over some months, at a meeting supposed called finally to reveal the figures, the council yesterday yet again demurred.
Read more

Posted by Elizabeth Kerr

90 Comments

Filed under Construction, CST, DCC, DCHL, DVL, DVML, Economics, Media, ORC, Politics, Project management, Property, Site, Sport, Stadiums

Stadium: carpentry contract(s) and WCs…

### ODT Online Tue, 22 Jun 2010e
Carpenters for stadium to be mostly local
By David Loughrey
Otago tradespeople should be doing the lion’s share of carpentry work at the Forsyth Barr Stadium in Dunedin, despite the largest contract going to an Auckland company. Carisbrook Stadium Trust chairman Malcolm Farry yesterday said while the contracts were yet to be finally signed off, it was expected there would be four subcontractors doing the work, three local, and one from Auckland.

Earlier this month, it emerged one contract had been let to Auckland company Wallace Construction without the knowledge of the trust, bypassing an agreed process between the trust and main contractor Hawkins Construction.

Dunedin Venues Management Ltd (DVML) chief executive David Davies was considering putting toilets, either permanent or temporary, at the west stand, where none were planned.

Read more

****

The following report was tabled at the DCC Finance and Strategy Committee meeting held on Monday:

Report – FSC – 21/06/2010 (PDF, 398.1 kb, new window)
Stadium Stakeholders Group Report

Post by Elizabeth Kerr

7 Comments

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

Stadium: Stakeholders group investigates carpentry contract

### ODT Online Fri, 4 Jun 2010
Carpentry contract: group seeks answers
By David Loughrey
The group in charge of overseeing the Forsyth Barr Stadium project has called for answers in relation to issues that have arisen over carpentry contracts for the stadium. Dunedin Mayor Peter Chin, chairman of the stakeholders group, which includes the city and regional councils, said yesterday he was “trying to find some answers” to why there was a breakdown in communication between the Carisbrook Stadium Trust and major contractor Hawkins Construction.

The legal process had been followed, despite “a miscommunication in the reporting of the process to the trust”.
-Malcolm Farry

Read more

Post by Elizabeth Kerr

Leave a comment

Filed under Architecture, Construction, Economics, People, Politics, Project management, Site, Stadiums

Stadium: Carpentry contract awarded, with a slight glitch!

### ODT Online Thu, 3 Jun 2010
Row over stadium contract
By David Loughrey
The carpentry contract for the Forsyth Barr Stadium has been let without the knowledge of the Carisbrook Stadium Trust, bypassing an agreed process between main contractor Hawkins Construction and the trust. Trust chairman Malcolm Farry confirmed yesterday the contract had been let to Auckland company Wallace Construction, after telling the Otago Daily Times late last week, and again earlier yesterday, he was unaware of the contract.

“Due process has to be followed. Most of the rules have been broken.”
-Malcolm Farry

Read more

Post by Elizabeth Kerr

33 Comments

Filed under Architecture, Construction, Economics, Geography, People, Politics, Project management, Site

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

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