This comment deserves an escalation:
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
What if? Dunedin... 