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
This post relates to the comment I posted early this morning at https://dunedinstadium.wordpress.com/2009/06/20/nzru-goes-for-10-team-affair/#comment-3410
Owing to what appears to be a damaged file at the DCC website, here are the reports from PriceWaterhouse Coopers and Horwath HTL Ltd direct from my computer archives.
In the earlier post I said:
For those who haven’t read the most recently published peer reviews by PriceWaterhouse Coopers and Horwath HTL Ltd on Otago stadium operationals and financials, refer to the following reports:
[PWC] Report – Council – 09/02/2009 (PDF, 7.1 mb)
Proposed Stadium at Awatea Street Attachment Two Part Two
ma_r_council_AwateaStAttach2-2 PWC 30-1-09
[DCC Link] http://www.dunedin.govt.nz/__data/assets/minutes_agenda/0003/52482/ma_r_council_AwateaStAttach2-2.pdf
[HHTLL] Report – Council – 09/02/2009 (PDF, 3.1 mb)
Proposed Stadium at Awatea Street Attachment Two Part One
[DCC Link] http://www.dunedin.govt.nz/__data/assets/minutes_agenda/0019/52480/ma_r_council_AwateaStAttach2-1v2.pdf