Log In

Reset Password

Burch expects 'highest scrutiny' as Dunkley questions handling of Police/court project

A crane builds a crane: A section of Court Street at the development of the new Police Station and Dame Lois Browne Evans court building last July. The $78m project has been hit by mistakes and delays.

Government Senate Leader David Burch says Government expects to have "the highest possible scrutiny by all and sundry" over the new Magistrates' Court/Police building.

Sen. Burch was responding on Wednesday to criticism of the project by Opposition Senate Leader Michael Dunkley, who called on him to "provide some accountability to this Chamber this afternoon".

Sen. Dunkley said the community were concerned about the handling of the project but that he felt "this Government doesn't seem to be in the least bit concerned at the direction it has taken".

The comments were made in a Senate debate over the Ministry of Works and Engineering budget for the forthcoming year.

Sen. Burch outlined the Ministry's departmental budgets for its Headquarters, Architectural Design and Construction, and Lands, Building and Surveys, on behalf of Works and Engineering Minister, Derrick Burgess.

Sen. Burch said the 2009/10 Works and Engineering Headquarters budget had been reduced by $205,000, three percent. Architectural Design and Construction was down by $98,000 a fall of six percent; Lands, Buildings and Surveys reduced by $2,761,000 nine percent; and the Operations and Engineering budget cut by $1,894,000, or five percent.

Overall, the Ministry's budget has been reduced by $4,958,000, or six percent, with an estimated expenditure set at $71,492,000.

Sen. Burch then spoke on the Hamilton Police Station and Magistrates' Court building.

"The contract for the construction management was $6.9 million. A maximum $66 million (budget) was awarded," he said.

"It has been decided to change the construction management for this project to a lump sum for the delivery of this project."

He said the construction administration had been given to a local firm, and that funding for the project was now $78 million the Total Authorised Figure (TAF). Of this, $19.5 million had already been spent.

"These costs relate to design, paperwork for all planning submissions, site investigation fees and construction fees," said Sen. Burch.

For 2009/10, Government has allocated an estimated budget of $15 million to the project.

After Sen. Burch finished outlining the Ministry's budget for the forthcoming year, Sen. Dunkley said: "One of the big items I want to focus on is Capital Development.

"One of the questions which continues to trouble me and I think many throughout the community is the ongoing inability for us to get it right on large capital projects."

Referring to the Berkeley Institute project, he said: "We seem to be reliving history again with the Police and Magistrates' Court building."

Sen. Dunkley said: "What are we going to do going forward to get us out of the predicament we are in?

"We got off to a patchy start and this seems to be a similar scenario to the senior school."

He said: "The company which was originally appointed was Landmark Lisgar Construction, even with the concern of Ministry architects as to their experience to handle this project.

"We saw the financing around the project four days before the contract was even signed. And the geotech report given to every company which bid on the project in spite of that, the firm who was awarded the contract still found the hard rock during the excavation of the site.

"And then the summer of 2008, Landmark and Lisgar are separated and now we have a different company take over, and we hear they are asking for cash advances.

"The Minister said there's been a change, construction management to a lump sum type management agreement. I'm not sure what the differences are there?"

Sen. Dunkley said: "We're not talking about building a bus shelter, we're talking about building a facility Bermudians need to have, we're talking about $79 million.

"I don't think this project was planned properly and I don't think it's been managed properly, but when we have cash flow issues and $19 million is spent in the first year, I believe we're over-budget and the taxpayer will pay for that."

He said: "I want to have some assurities in some way these problems are going to be behind us and we will move forward to get a project completed into something Bermudians can be proud of, and pretty much on time.

"It really unsettles my stomach to go through the first 14 to 15 months of this project, knowing we've still got a long time to go before that ribbon cutting ceremony.

"I understand the honourable Member did make reference to some of the changes they will make to the department and who they will handle contracts, etc. (ie. the new tendering website) but this mess was started and needs to be cleaned up.

"And the public needs to know the Minister and the Cabinet are on top of this and we will not see millions of dollars frittered away as in previous contracts (Berkeley Institute).

"We need some clarity, we need to deal with the facts as they are and get some answers. I'm very concerned about the direction of this project and that this Government doesn't seem to be in the least bit concerned at the direction it has taken.

"I am asking the honourable Member to provide some accountability to this Chamber this afternoon."

In the few minutes remaining in the budget debate, Sen. Burch said: "The one thing I will say about this court building is that unlike the Berkeley Institute, the Hamilton Police Station/Courts building is right in your face.

"And if you travel in this city often you can't help but notice it's being built and going up in leaps and bounds, quite dramatically, faster than heretofore.

"So it is a high enough profile project, you'd have to be pretty dumb to think you could hide anything to that project."

He said: "We expect to have the highest possible scrutiny by all and sundry and we expect it will come in on time and as expected."

Senator Michael Dunkley
Minister David Burch