Equilibria
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I'm interested most in Slide 22, where they claim that their reduced project saves $700M over the "Previous Project". They claim that the old estimate is from iGMP#4 "proportioned to" iGMP#5. But the iGMP estimates from the past two years supposedly aren't trustworthy - that's why the cancelled those contracts.
According to this, the team can account for the entire difference between the prior untrustworthy estimate and their new $2.3B estimate. It's all in the 5 categories listed. That means that according to this group, the $3B estimate was completely legit, just for too big a scope.
That has several problematic implications for me, including:
- If the WSK et. al. estimate was accurate, then you've completely thrown them under the bus by blaming the contracting arrangement for the overruns.
- It's possible that the new consultants have maintained assumptions about item pricing and construction costs from the old, untrustworthy estimates. We know that GLX is absurdly overpriced compared to comparable projects nationwide - why was resolving that not the #1 objective for this study?
- If cancelling the contracts didn't save you any money, why cancel them? What did that accomplish except delaying the project? Under the old contracts, you could redesign the sections piecemeal as you went along - that's the whole point of that method.
I have to stand with the general tone of this thread: I think this entire exercise has been a complete waste of time. If all you did was cut from the project, and if you're endorsing the prior consultants' $3B estimate, then they did nothing wrong and you should have resolved the issue with them. If you maintain that the old method produced inflated estimates (as every prior report on it has indicated), then what assumptions did the new consultants make that caused them to come to the exact same conclusion about what the project would cost as previously designed?
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