Letters

Can somebody please explain how the work on this project has been accurately costed given that the latest press release in your publication states that the resolution for such major aspects as joinery, services, materials, and structure including the seismic joint between the new and old buildings are still in the design phase? What, if anything has been resolved and therefore costed properly?
The management of this project is flawed and places the ratepayers, residents and other stakeholders at huge risk of cost overruns in the build and on-going operating costs well in excess of any income generated.
Karen Krogh (architect)

Paul Crimp replies
The Waihinga Centre project has been managed in such a way to reduce risk as much as possible. Key aspects to this risk reduction are formal review points whereby Council reviews all aspect of the project (time, cost, revenue, functionality), and make a “stop/continue” decision at these reviews, the use of experienced independent quantity surveyors, and the “early contractor involvement “ process.
 
We have retained experienced quantity surveyors Rawlinsons to provide independent cost estimates. This process gives confidence that where there are costing uncertainties, the best industry estimates are used.
 
None of the formal and informal reviews has raised any issues in terms of significant risk.
 
We recognise that all projects of this nature have a risk element, and continually review our approach to ensure risks are eliminated or mitigated as much as possible. It is important to note that we have an experienced project manager and that the contract will be awarded on a fixed cost basis, in addition large contingency sums have been budgeted.
 
We are confident this project will achieve the cost and revenue targets forecast.
Paul Crimp
CEO
South Wairarapa District Council