state's schools blowout exposed

And to think that people will still vote for these IDIOTS!!!


http://www.theaustralian.com.au/national-affairs/states-schools-blowout-exposed/story-fn59niix-1225901860057


GOVERNMENT primary schools in Victoria yesterday learned the extent of their BER rip-off.
Previously confidential figures showed state schools paid more than double the price of their Catholic counterparts for new halls and exorbitant fees to managing contractors.

The Brumby government, which had refused to release costing data since the inception of Julia Gillard's Building the Education Revolution program, has released figures revealing the extent of cost blowouts, fee duplications and poor value for money spent on state primary schools.
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According to the figures, provided as part of a government submission to a state parliamentary inquiry into the $16.2 billion scheme, the government expects to pay an average of $4842 per square metre for 390sq m halls delivered under the scheme, and $5575/sq m for 160sq m buildings.


By contrast, the Catholic Church is delivering school halls to its schools for an average of $2221/sq m.
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The Victorian data provides average cost breakdowns for each of the 17 template designs built in more than 1200 state primary schools as part of the BER stimulus program. As many of the projects are still being built, the figures are described as an "anticipated final cost".

Analysis of the data shows that in some projects more than 25 per cent of the total budget is soaked up by project management, design and unspecified fees. This is despite all projects being built according to government template designs.

Much of the extra cost appears to stem from additional payments to managing contractors for items such as "special factors", "special site allowances" and "decanting".

Hoddles Creek Primary School principal John McKelvie, who has fought a long battle with state education bureaucrats to get a toilet block built and an administration building refurbished, said he could not believe the average cost of $843,300 cited for his school's project.

"For that price I should be getting solid gold taps and toilets," Mr McKelvie said.

The Victorian government has previously claimed fees to program managers - the major construction companies handling the roll-out - are capped at 4 per cent. Both the Queensland and NSW governments made similar claims until investigations by The Australian revealed those fees were as high as 15 per cent and 21 per cent respectively.

According to the Victorian figures, a $1.97 million 656sqm library and classroom block cost $1.435m to build, plus a $96,500 "design fee" and a $412,200 fee for "site specific project costs".

The Australian understands those project costs are payments to the program managers handling the scheme.

Investigations in Queensland and NSW have shown that, although some payments for those services are required, they have been massively overstated by some managing contractors.

The project managers handling the scheme in Victoria include Coffey Projects, Incoll, APP Corporation and a joint venture between Davis Langdon and Sinclair Knight Merz. A "program manager" - a joint venture between consulting and design firms Indec and Arup - has also been appointed.

Each project and program manager refused to speak to The Australian yesterday, citing confidentiality clauses.

A spokesman for Victorian Education Minister Bronwyn Pike said yesterday site-specific project costs included "demolition of existing buildings and the construction of car parks".

The government would not disclose the full fees it was paying to managing contractors, instead re-stating that "project management fees are below the 4 per cent ceiling set by the commonwealth government".

According to the figures, public schools are paying an average of $3189 a sqm for classrooms. The Catholic Church has said it has paid an average of $2327 a sqm for classrooms under the BER.

The Catholic Church, which is delivering individually designed buildings rather than template designs, has repeatedly rejected suggestions that its buildings are of a lower standard.

The Catholic Church cost figures are roughly in line with estimates determined by Rawlinson's Australia, which published the nation's most respected building cost guide.

Federal opposition education spokesman Christopher Pyne yesterday called for the Victorian government to disclose the full fees it was paying to program managers, and repeated calls for a judicial inquiry into the BER.

"These figures from Victoria again show the huge waste and mismanagement that has occurred under the school hall rip-off," he said.

"A judicial inquiry with full powers to summons witnesses and subpoena documents is required."

Victorian opposition education spokesman Martin Dixon said the figures showed Victorian government schools did not get value for money.

Victorian Principals Association Gabrielle Leigh called for individual school costings to be released.