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'They just find ways to overrun costs'

Shadow Finance Minister Bob Richards claimed the Government didn't plan properly for the new Magistrates' Court, Police building, causing it to go over budget.

Works & Engineering Minister Derrick Burgess told the House of Assembly on Friday that the building would go over budget by $13.3 million.

In November, Mr. Derrick Burgess said the project would be completed within the Total Allowed Funding (TAF) of $78 million.

But on Friday in the House, Mr. Burgess said the building would now cost taxpayers $91.3 million due to unforeseen ground conditions, changes of the building code, a larger generator, tenants, a local design team, building permit fees and having an owner's representative on the site.

The complex was originally expected to cost $70 million. In December, Mr. Burgess said the excess cost would not exceed $10 million and would not be anywhere near $18 million.

Mr. Richards said: "The excuse given by Minister Burgess of how they had to outfit the building that they didn't account for in the first place, that seems incredible. They still have offices all over town.

"The whole rationale for Government being in their own building was that they wouldn't have to pay rent. They were thinking of buying the Swan building.

"Having said all that, for them to have a building with empty spaces and they weren't planning on renting it, it just shows that there was no planning. It's helter skelter.

"They just find ways to over run costs. This one here is a mystery to me. I do think there has been extra effort to try to keep this particular project under control. They have hired a firm to do it. But then we have this which seems to me that somebody just didn't do the job in the first place."

Donte Hunt of the Bermuda Democratic Alliance said: "Whilst we heard the Ministerial explanation in the House of Assembly on this issue, it still is a fact that there is massive cost overrun. It calls into question again the way in which large scale capital projects are being managed by the Ministry of Works and Engineering.

"Again fiscal prudence and a better management of the public purse is important, especially at this time — this is simply not happening and has not happened under this administration. The Alliance has consistently called for more prudent management and asks the question again of the people of Bermuda. Would you be satisfied if your budget overran by such large amounts? Each voter will be shelling out approximately $526 on this project. The better way is better oversight of such projects."