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Beyond the expected

Will the lowest bidder please stand up?

By johnboy - 13 August 2011 6

Andrew Barr is asking the construction industry to undercut the planned costs of Government office building in Civic and for the Gungahlin Penal Battalion.

After exploring a range of financing and ownership options for new accommodation, our consultants have advised the most cost effective way to do this is for the Government to own and build the city office block. I want this advice tested in the market place.

The ACT Property Council has stated very strongly that their members can meet the Government’s accommodation needs in Gungahlin and Civic in a cost effective manner by building and owning the properties which the ACT Government would rent for a period of 25 years.

Given the importance I place on getting the best value for money for the people of the ACT I want to give the property industry the opportunity to deliver.

The Government will make its final decision based on the best overall value to the ACT taxpayer including build cost, environmental performance, occupational health and safety for staff, running costs, efficiencies to be gained from having key public servants in the same location, as well as Labor’s commitment that a minimum of 10 percent of workers on the project will be apprentices, trainees and indigenous people.

What’s Your opinion?


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6 Responses to
Will the lowest bidder please stand up?
justin heywood 11:34 pm 13 Aug 11

“Given the importance I place on getting the best value for money for the people of the ACT….”

Oh please stop. Does anybody really buy stuff like that anymore? Value for the ‘people of the ACT’ is the last thing on their mind. They will spend/borrow exactly the amount they believe the populace will tolerate. And if history is any guide it will cost a lot more than originally budgeted anyway.

Canberra. A first-class city run by second-class people (apologies to Donald Horne).

milkman 11:03 pm 13 Aug 11

This is all just government speak for ‘cheapest’. It’s the same across government.

2604 11:00 pm 13 Aug 11

p1 said :

I hope the include in the calculation the fact that if the government builds it, they will own it. At the end of 25 years they will still own it (rather then being in a position where they need to renegotiate a lease).

Don’t forget that if the government owns it, it will incur the initial cost of constructing it and will forego the upfront money that it would get by selling the land to a developer. Plus, it will have to pay the ongoing costs of maintaining the base building.

Also, a 25-year-old office building isn’t worth squat – most buildings of that age are only worth what the land is worth and are simply demo’d and rebuilt anyway.

p1 8:21 pm 13 Aug 11

I hope the include in the calculation the fact that if the government builds it, they will own it. At the end of 25 years they will still own it (rather then being in a position where they need to renegotiate a lease).

alaninoz 4:27 pm 13 Aug 11

“The Government will make its final decision based on the best overall value to the ACT taxpayer including build cost, environmental performance, occupational health and safety for staff, running costs, efficiencies to be gained from having key public servants in the same location, as well as Labor’s commitment that a minimum of 10 percent of workers on the project will be apprentices, trainees and indigenous people.”

They’ll be able to make whatever decision they like if they use that set of criteria. The bit about “…efficiencies to be gained from having key public servants in the same location…” is a real get out of jail free card. And “…occupational health and safety for staff…” isn’t far behind.

The Frots 3:00 pm 13 Aug 11

Well, hopefully when that guy and his mate have finished the GDE, he can swing by and start on that building!

At a guess, I’d say $673 million and 47 years to complete should win the tender!

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