Tauranga city council slammed for poor ownership of abandoned parking lot
The Harrington St parking project was scrapped after $ 19 million was spent there.
The auditor general berated Tauranga town hall for its disastrous handling of a parking lot project that wasted millions of dollars.
After spending $ 19 million, Tauranga City Council halted work on the Harrington St Transport Hub parking lot.
Construction of the transportation hub began in June 2018. Two years later, the council decided to abandon construction of the partially constructed facility.
In May 2019, the council was informed of a technical construction issue related to the design seismic resistance of the structure.
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The council said the costs of reinforcing the flawed building would be significant compared to the project’s original budget of $ 29 million.
It was estimated that it would cost $ 9.8 million to demolish the building and restore the site. Instead, the council sold the site to the prime contractor for $ 1 in March 2021.
She sold the used construction materials and steel and negotiated a construction contract settlement, resulting in a final payment of $ 200,000 to council.
In a letter to Tauranga city council, Auditor General’s investigative officer Dave Lemmon said that in the end, the council would have nothing to show for the money it spent. , raising important questions about the procurement process used by the building council.
Lemmon noted that the board did not follow government procurement guidelines established by the ministry which suggest that before a project begins, a team is formed, accountability and governance measures are put in place. , stakeholders are identified and record keeping processes are established.
“These measures were not taken during the launch and construction of the project. We recommend that these fundamental principles be incorporated into the board’s procurement processes. “
Lemmon’s opinion was that the board focused on price at the expense of the supplier’s ability to deliver the work for which the contract was intended, an unclear goal for the project even after it started and unclear responsibilities. during its execution.
“This is not what you would expect when a local authority, or any public organization, spends public money.
“While there is often pressure to complete projects quickly and at the lowest possible cost, realizing value for investments like this can require time, expertise and the discipline of good procurement processes. and project management. ”