BER: 50% of budget disappears
More waste from Rudd and Gillard’s $16.2 billion so-called Building the Education Revolution…
My BER mole states that stuff is being built for about $1.4 million, dropped down from $1.7 million + GST but the NSW government website has the same stuff budgeted at around $3 million to $3.2 million. That’s a heck of a difference even if one allows for the 6% “managing contractor’s” fee and the builder’s 11% profit margin. But $1.5 million??? Thus, the question on everyone’s lips is, “Where is all the money going?” The builders can’t say. Not even the managing contractors can say. Does Julia know? One thing is for sure, but. Julia’s $14 million so-called inquiry? Add that money to the amount that has been wasted on this BER scandal.
Seriously, I have no idea where 50% of the project cost has gone. Granted this makes my employer look bad as the builder, but what does that say about the Project Manager for the government when the cost of managing the project equals the project value?
And then we have employees of the Reed Group receiving massive cash bonuses of up to $1 million. The Reed Group is a major advertiser on 2GB, the radio station that hosts Alan Jones’ breakfast show and also Ray Hadley. Someone please tell me this isn’t why Jones changed his tune on all of this.
He [Reed Group’s Bob Leese] said the seven managing contractors he had appointed via a tender process had worked very well.
The BER is a farce not from the point of the guys building it, it is from the people who are supposed to be managing it.
With the ratio of project managers 10 times the standard industry ratio, and with over-worked project managers signing cheques left right and centre, this was always going to end, er, not so nicely.
This fetid BER mess stinks more by the minute. Heads must roll. Rudd’s and Gillard’s first.
(With thanks to my mole and Merylin Williams.)
An inquiry? Nothing short of a Royal Commission will get to the bottom of this, but there’s so much money involved – this is arguably Australia’s biggest scam ever – that I wouldn’t even trust that until another government is in power.
It is fairly typical of any government contract, amateurs trying to contract the inept to oversee the professionals.
Perhaps so. But this time we’re talking over $16 billion of taxpayer money being wasted on a program with massive systemic failures being executed on a national level. That’s about an $800 rip-off for every man woman and child in Australia.
And on one hand we have private schools receiving a huge wad of cash, but they are able to choose their architect, choose what they want built, and choose who builds it. And they are getting value for money. On the other hand, we have the public schools being dictated to as to what will be built, who’ll design it, and who’ll build it, and we are seeing massive cost blowouts.
This is a “plan” that was rushed out by complete incompetents, that has been managed like kids managing a candy store, and how dare Gillard and Rudd get away with it.
For sure, this is not directly and solely related to this BER, but Labor has taken a massive hit in the NSW by-elections. Unprecedented, in fact. More than 25% swings. Any other time that would be astonishing, but not now.