Tag Archives: University space programme

Report from the University Landscape Trenches : Financial shoring collapsing, trouble brewing

Received from Rhodes
Mon, 24 Oct 2016 at 9:14 p.m.

Saturday’s ODT had an interesting article about delays on the troubled University of Otago landscaping project. This article is the canary in the University construction goldmine, as there are other even much larger disputes brewing on current University projects that certainly will become a goldmine for the contractors, to the detriment of the University’s financial health.

uoo-landscaping-20160508_135933Hoarding, University of Otago

Mr Mackay said the complications on the landscaping included “replacing old water, sewage and drainage pipes”. What he did not say is that this work was meant to have been done two summers ago, BEFORE the academic year, but due to the project management, it was not. However, this landscaping project is small beer, there are much bigger problems looming.

The University, in their biggest ever project, at the 11th hour, on the “advice” of a contractor, Fletcher Construction, who we understand did not even finally submit a bid, told the University they could save a few hundred thousand on the $100 million project by deleting the need for a cost control schedule…. that would have severely limited what the contractors could charge for changes and extra work. In a monumental display of incompetence, the University stopped production of the schedule – which was already underway and had to be part paid for anyway and put the drawings and specifications out to tender without a schedule. If the drawings were 100% complete and the University wasn’t to change its mind that would be OK, but the Pope is more likely to preach at Canterbury Cathedral than this happening. Of course, the drawings are woefully incomplete, and the arguments and changes have started. Watch out for Someone from the University Property Services division, in about a year, to be in full dissembling mode about the delays, and how, “even though it’s six months late, it’s still on budget”. If that is the case, the budget has massive doses of incompetency cover built into it !

An additional problem that’s about to come home to roost in the University and Otago Polytechnic’s coffers is insistence, by University Property Services, on the use of “Early Contractor Involvement” (ECI). (Someone at University Property Services has never met a new construction euphemism he did not use or a project delay that he could not justify). Both the University and Polytech on recent large projects have engaged in tender processes where there is no fixed sum, because the documents are far from complete, and the current fashion du jour is to have “early contractor involvement” where the builders are paid to be involved in the design phase, to provide “constructability” expertise. Basically the builders make a submission to say what nice people they are, and advise percentage site overhead and profit margins they would build the project for. The rest of the cost, about 85-90%, is just guesswork. (“Provisional Sums”). This process allows the “tender evaluation team” (mainly the Architect and the University) to choose who they want, without regard to price, because the weighting for “non-price attributes” is a lot more than 50% of the total weighting.

On both the University commerce building project, just started by Naylor Love, and the Polytechnic Hostel project (also won by Naylor Love), this was the process. Both projects are around $20 million all up. Significantly, the architect on both projects was Mason & Wales. There were a number of other consultants in the design teams. The politest way to put the next point is that there appeared to be “confusion” about the proposed early contractor involvement process from the team. It was thought, inexplicably, that this wonderful new system of selecting builders without worrying about price meant not only did they get to choose ones with very high margins who wouldn’t cause problems when the inevitable design problems arose, some consultants also thought that they could charge full fees and offload all of the detailing onto the builder…. which of course did not happen. Builders, in the South Island anyway, do not employ armies of CAD operators who can document bespoke large projects. That is what designers are for…. In both cases, the successful Naylor Love bid was hundreds of thousands of dollars more expensive than lower bids. Also in the case of both bids, the University and the Polytech paid a premium of around $500-600,000 to have the “ECI/ constructability” experience of Naylor Love…. only to find that the advice received was NOT what was expected…. the Polytech project has been now costed by Naylor Love and is $1.5-2.0 million over budget, and the “expert” constructability / ECI advice that the Polytech effectively paid $600,000 for is…. wait for it…. to make the building smaller. Hmmm, expensive and brief advice! Best not tell the Humanities students ! The other unsuccessful contractors may well feel aggrieved about how this process played out, as before they were even allowed to provide a proposal they had to prove their capability and experience to do the work, so in theory all tenderers were equally capable, and there was no logical reason for the favouritism to Naylor Love…. but were there other reasons ? There appears no meaningful financial oversight, the project teams seem a law unto themselves, and the suspicion is that both institutions’ funds are being spent in a very free and easy fashion.

[ends]

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Posted by Elizabeth Kerr

This post is offered in the public interest.

6 Comments

Filed under Architecture, Business, Construction, Design, Dunedin, Economics, Finance, Media, New Zealand, Otago Polytechnic, People, Pet projects, Politics, Project management, Property, Public interest, Resource management, Site, Travesty, University of Otago

University rolls down, Harlene not the only problem….

cat called harlene [sunlive.co.nz] 1

Due to an observable fall in student numbers, we have claimed if not predictably on other threads that there is PANIC !!!! at the University of Otago.

We’ve set to encouraging “our people” to attend other universities; while University of Otago continues to generate and support drunken disorder and lawlessness in our public domain —by allowing wayward noisy destructive gatherings (euphemistically known as parties!) in the tertiary campus area, particularly at the likes of Hyde and Castle Streets. These combine the usual assortment of assaults, vandalism, fires, hospitalisations and arrests, with undue waste of personnel, money and resources by emergency services, city council and university —impacting taxpayers and ratepayers. This so-called support from University of Otago and OUSA for youthful hijinks (civil unrest and criminality) comes as “ambulance at bottom of cliff”.

Funny we should say “ambulance” —perhaps it’s better to use “rapid response vehicle with broken windscreen”, Harlene?

Although you prefer “paving” and “village square”, or whisper “quality”.
How about ‘Dark Disgrace’ ?

█ QUESTION: Is University of Otago using an open tendering system for construction projects? YES/NO
If not why not, contact head of http://www.otago.ac.nz/propertyservices

### ODT Online Thu, 2 Apr 2015
Editorial: Jolting any university complacency
OPINION Whatever the spin from the University of Otago, the sudden drop in first-year domestic student numbers is a shock. The fall of 350 full-time equivalents (Efts) equates to nearly 10% over last year. It reverses the previous year’s first-year domestic increase of 119 (3.2%). […] Overall, the roll decline compared with March last year is 469 to 17,172, against a budgeted prediction of an increase of towards 200. Vice-chancellor Harlene Hayne might say projected shortfall in income is less than 1% of the total budget. But the university is a huge organisation and 1% represents about $6 million.
Read more

****

BORING SALES TALK FROM HARLS

### ODT Online Wed, 1 Apr 2015
Luring the best and brightest
By Harlene Hayne – Vice-chancellor, University of Otago
OPINION It is easy to forget that neither constant growth nor sheer size define the world’s great universities. Indeed, if anything, the opposite is true. Among those that consistently make the top 10 in the prominent international rankings, the vast majority – including Yale, Stanford, Harvard, Princeton, Oxford, Cambridge, MIT, Chicago and Caltech – have a student roll either similar to or smaller than Otago’s.
Read more

Bottom of cliff - altered image [orig by Christopher Slane 2.2.08 via natlib.govt.nz] 1

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Posted by Elizabeth Kerr

*Images (tweaked by whatifdunedin): sunlive.co.nz – Cat (called Harlene); natlib.govt.nz – Bottom of cliff [original by Christopher Slane 2.2.08]

81 Comments

Filed under Architecture, Business, Construction, Democracy, Design, Economics, Highlanders, Hot air, Media, Name, New Zealand, ORFU, People, Politics, Project management, Property, Site, Sport, Stadiums, University of Otago, Urban design