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Govt. explanations of overspend were inaccurate, say contractors

Government gave the public an incorrect summary of cost overruns on the Dockyard project, according to two companies who carried out the work.

Main contractor Correia Construction has refuted two items in the Ministry of Tourism and Transport's Parliamentary Answers on the $3.7 million costs of "dolphin mitigation".

And Correia's subcontractor Norwalk Marine International (NMI) also raised questions over the official figures.

In March this year, Premier Dr. Ewart Brown told the House of Assembly the project had run over budget by some $6 million, $3.7 million of which was due to "dolphin mitigation".

However, according to figures released by the Ministry three months later, the money spent protecting the dolphins could reach as high as $10.3 million.

Correia told this newspaper that among the figures, $1.1 million in payments to NMI and $4.4 million in change of construction method costs, should not have been included in the Government summary.

The alleged incorrect information was discovered as The Royal Gazette asked Correia to explain why a change in the method of how concrete sections were installed led to $4.4 million in extra costs when the intention was to make savings.

Correia, the main contractor for the project, decided to change the originally planned method of mixing concrete and forming it on site the technique on which the costs for the original contract were based.

Instead the firm opted to bring in pre-cast concrete, formed in the US by Atlantic Metrocast, of Portsmouth, Virginia, and ship it to Hamilton docks.

Correia director Dennis Correia said costs for the two methods were comparable and that Government's estimation of $4.4 million in extra costs was inaccurate.

"I think the Government number is incorrect," Mr. Correia said. "The $4.4 million does not sound right at all."

When the contractor had compared the expense of in-situ casting versus using precast sections, he said costs "were running neck and neck".

On March 11 this year, Dr. Brown announced the Dockyard project had climbed $6 million over budget in 2008. He told the House of Assembly the overspend was in part due to an unexpected sum spent on "dolphin mitigation".

Announcing the measures to MPs, Dr. Brown said: "It went up to $3.7 million. That's really taking excellent care of the dolphins."

Later that month, Opposition Senate Leader Michael Dunkley submitted Parliamentary Questions asking Government for a breakdown of the $3.7 million costs.

Two months later, Junior Tourism and Transport Minister Sen. Marc Bean provided answers.

The official response from the Ministry stated that the "impact of delays and dolphin mitigation" was $10.3 million. Of this, it calculated that between $3.7 million and $6.3 million was "attributable to dolphin mitigation".

Among the listed items was the $4.4 million cost attributed to "change in method of construction from cast in-situ to use a reinforced concrete pre-cast alternative". This was broken down as $1.8 million paid to Correia for the main dock and $2.6 million for the bridge section.

Also mentioned in those answers was a cost of $1,159,200 to "extend subcontracting period due to delays to still meet completion date".

However, Correia contracts administrator Jane Correia said she did not know how Government had calculated this figure as an extra. She added that the same number had appeared in Correia's books as a running total of regular payments made to NMI at one point in time.

After The Royal Gazette published the Government figures in June, NMI boss Louis (Skip) Gardella called the newspaper to express his concern.

"If Correia Construction was paid $1.1 million for extension of the subcontracting period, I can tell you that we didn't get that money," Mr. Gardella said.

"Our labour was contracted to work 50 hours a week for this project.

"It's one thing if Correia got paid more, but Norwalk Marine certainly did not get paid any more."

Financial records from both Correia and NMI, made available to The Royal Gazette, show that the subcontractor received just over $2.7 million in total payments from Correia for items including hire of its staff and equipment throughout the course of the project.

That figure includes $514,990 for Mr. Correia's purchase of a Link-belt crane and a vibratory hammer, used for pile driving, from NMI.

But it does not include the $600,000 paid out by Correia Construction to NMI in an out-of-court settlement early this year.

We pointed out to the Ministry of Tourism and Transport that its description of costs for dolphin mitigation was inaccurate, in the view of both Correia and NMI, and invited an explanation.

The Ministry did not address the issue of alleged inaccuracy in its response.

"The Ministry of Tourism and Transport has previously provided responses to questions with respect to costs associated with the development of Heritage Wharf, therefore, this information is already in the public domain," Government said.

"Timelines, design changes, pregnant dolphins and development approaches all combined to result in increased costs."