Friday, September 12, 2008

"Ad hoc" project management costs Edmontonians dearly

Edmonton's Auditor recently released a report on the 23rd Avenue interchange project.  The project costs rocketed from $75-million to $261-million over the past few years.  
The obvious blame has been rising construction costs and general inflation.  

The Edmonton Journal article tells most of the story

However, Auditor David Wuin's report tells a more complex story.

This chart above is from page iv of the report showing how advanced the City's project management was of the 23rd Ave project.
As you can see it's barely above an ad-hoc project management.  Less than a 2 out of 5 on the scale.  

The report (as does the Edmonton Journal article) explains that an inexperienced engineering student was handed the reigns of this project.  Further, that city council was not told of the expected cost increases each year, not allowing council to budget for increases each year.

The bottom-line is that city administration dropped the ball repeatedly, costing taxpayers an additional $186-million or the equivalent of a 25% property tax hike.  

With this lack of competent management, it's no wonder the city is facing a $13-million deficit this year as well.

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