Slew of design changes led to massive cost overruns
Hundreds of changes and additions to the plans for the new cruise ship pier at Dockyard led the cost to balloon by almost $17 million, according to bosses of main contractor Correia Construction.
The add-ons ranged from a fast ferry dock to measures necessary to comply with post-9/11 port security standards, a terminal building that grew in size and intricacy, and ornate, custom-made lampposts, the company said.
Correia Construction director Dennis Correia told The Royal Gazette that every one of the hundreds of changes was vetted by project engineers Entech and Government auditors before being approved.
The price tag on the original contract was $39 million. Correia's financial records, shown to The Royal Gazette, show the company ended up charging $55.8 million to the project, which was completed six months ago.
The Government's latest total funding allocation of $60 million also includes the cost of other services in the project, such as architects, engineers and consultants.
The terminal building, for example, appeared in the original sketches for the new dock by Miami-based Bermello Ajamil & Partners as a simple, single-storey building and ended up as something much grander.
In answers to our questions, the Ministry of Tourism and Transport revealed that the total cost of the building ended up being $3.9 million nearly double the sum allocated in early cost estimates.
"You talk about a cost difference," Mr. Correia said, adding that he had received the final design of the terminal building on April 25 this year just four days before the project was completed. "They got the Taj Mahal, you could put this in Tucker's Town as a house."
Ensuring that security standards were raised to level three the highest possible under the International Ship and Port Facility Security Code also resulted in expensive changes, Mr. Correia said.
"Level three security allows you to lock down the entire port if there's a problem, such as someone falling overboard," Mr. Correia said.
The measures necessary included the building of a special section for Seaport Security with cameras and the installation of X-Ray machines for Customs' use.
Another security requirement was the building of toilets for Customs staff, with a separate sewerage system, comprising a tank and piping so the sewage could be pumped ashore.
Lampposts had to be custom-made by a Texas company to ensure they matched others in the historic Dockyard area.
Major changes were also made to plans for the Ground Transportation Area (GTA). Its elevation was lowered, so it would be more accessible to leisure boats and the traffic flow of the area also had to be redesigned to accommodate the preferences of taxi and minibus operators.
Driving of the piles the pipe-like foundations of the dock also added expense to the project, as they went down much further than had been anticipated.
The contract prices were based on the piles going down 110 feet before hitting sufficiently firm rock to establish the necessary weight-bearing capacity. However, most plunged further into the seabed than that, Mr. Correia said, adding to materials and labour costs. The deepest went down 167 feet.
Correia contracts administrator Jane Correia said every change and added expense went through a meticulous process. "Dennis and I weren't going off like two cowboys here," she said. "Everything we did, we had the Auditor General and Entech (the project engineers) watching."
First a transmittal would go to Entech, she said, with a written explanation of why a change was necessary and a cost estimate. This would then be sent to the Auditor General's office for approval, before coming back as a variation order.
If a change had the result of reducing costs on the job, Correia would have to give Government back a credit.
"The Government has done its due diligence in its audit," Mrs. Correia said. "This is all very much above board."
Payment from Government came in instalments as work was done. "Every month, Entech managers would come on site and say 'you've got two percent of this done, so we'll pay you for two percent'," Mr. Correia said.
"They would approve the invoice and sign over on it. The job was itemised down to every nut and bolt."
The Ministry of Tourism and Transport said payments for work done had been closely monitored.
"The system in place for monitoring the costs of the Dockyard project included a review of monthly payment certificates by Ministry resources," stated an e-mailed Ministry response to our questions.
"These payment certificates were checked and recommended for payment by an independent project manager; all calculations were verified by the Ministry and all payments were made in accordance with the contract terms."
