Monday, February 06, 2006

The ballooning budget

CBC reports:

Regina's new federal government building is overdue and over its original budget by about $15 million.

Federal officials say high construction costs have hiked the bill for the redevelopment of the office tower and shopping centre known as the Galleria, located downtown at the corner of Hamilton Street and 11th Ave.

When the project was announced in 2004, it was supposed to cost $29 million.

However, officials now estimate the price tag will be $44 million.

Officials are blaming inflation and high steel prices for the budget bloat. But is that really the reason? We recommend taking a look at the constant changes to the plans during construction and the required architectural and engineering revisions. I received a tip on this a year and a half ago.

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