Downham £4.5M over budget before works start
Rumour has it that Lewisham Council is about to finally sign the contract for the Downham Lifestyles Centre.This project initially had a construction budget of £10.5M.
This had to be topped up to £13M because of added inflationary costs.
Last week it emerged that in between the start of negotiations and now Lewisham Council found the way to also spend at least £876,000 on consultants.
It is now known that the contract that Lewisham Council is about to sign includes a further increase in the price to be paid to the Leisure Connection led consortium for the running of the facility.
Apparently this increase is of about £40,000 per year.
As the contract runs for 30 years this totals a £1.2M increase.
So, let's recap:
first overspend ........................ £2.5M
(inflationary costs incurred as negotiations stalled)second overspend....................£876,000
(we consider the consultants costs as all overspending. Lewisham Council has a large number of officers handsomely paid to reflect their experience and professional value. If their wages are anything to measure them by, they could have been able at least to sort out a contract without asking for help from expensive expert consultants that, at the end, produced as result a contract that delivers the last overspend of the pre-construction period of this saga)third overspend............................£1.2M
(increased price for the running of the facility, £40k for 30 years running)Total overspend..................................£4,576,000
This overspend has all accumulated since Lewisham Council decided on the Leisure Connection bid as the one to go for in July 2003.
The
very worrying thing is that the Council at least had a plan for this
centre. Unlike for the replacement for Ladywell that still has no
concrete plan.
Would you trust them to demolish the Ladywell Leisure Centre before the replacement is delivered?
This
time they seem to have found the money to cover this impressive hole.
If things go on like this there will be very little money left to cover
future holes in the building programs of Lewisham Council.
And the more ambitious they are, the riskier they get. ...read more...

