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  1. #1
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    Default 90% Cost Overruns on School Construction

    Dominican Govt. agency overseers find 90% cost overrun





    Santo Domingo.- The Oversight Committee of the State Works Supervisory Engineers Office (OISOE) on Monday said construction cost on some schools have skyrocketed 90% above budget, in violation of the law.

    In a letter sent July 14 to Presidency chief of staff Gustavo Montalvo quoted by elcaribe.com.do, committee members said the irregularities in some schools are as high as 90% over budget.

    They said the school at the Savica sector of the capital was budgeted at RD$54.5 million but has cost RD$99.6 million thus far, or RD$45.1 million more, for a 82.83% jump.

    "We understand that the process used to allocate the construction of schools does not guarantee transparency in the process of construction. We suggest the lottery process to strengthen and serve to select a short list that will compete by presenting a budget that requires them to work according to what they have committed to do the same," the overseers warn.

    Delayed information

    In the letter, observers Radhamés Mejía, Jesús Moreno, Mariluz Arias, Addys Then and Daniel Óscar also complained of delays to hand over requested information on the current status of constructions.

    i posted, some time back, that the push to build all these schools by the Medina administration had a nice, cheery countenance, but it was just a cash cow for the kleptocratic elements which form the government. well, here you have it. 90% cost overruns, in certain cases.

    so, the arithmetic is simple. when you spend all the money on fixed capital expenditure, there will be nothing left for recurrent expenditure, namely paying teachers of any meaningful quality.

    there are several working papers which state, with cross country studies, that the more corrupt a government is, the more it spends on fixed capital projects. here you have some proof.

  2. #2
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    Not only THAT, but once the schools are finally built, and Danilo has done his"Dog & Pony Show" dedication, there are no qualified teachers to teach, and no desks or other furniture to hold classes!

    The "BIG KICKBACKS" are in the CONSTRUCTION!!!!!
    Nothing NEW HERE!!!!!

    CCCCCCCCCCCCCCCCCC

    CCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCC

  3. #3
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    Quote Originally Posted by Criss Colon View Post
    Not only THAT, but once the schools are finally built, and Danilo has done his"Dog & Pony Show" dedication, there are no qualified teachers to teach, and no desks or other furniture to hold classes!

    The "BIG KICKBACKS" are in the CONSTRUCTION!!!!!
    Nothing NEW HERE!!!!!

    CCCCCCCCCCCCCCCCCC

    CCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCCC
    yes..Danilo, the original Edward Scissorhands, will be cutting ribbons aplenty all over the country. then the Department of Statistics will tell us that literacy and academic achievement went up by 50% in one year.

    it is to laugh.

  4. Likes Criss Colon liked this post
  5. #4
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    Thus it is with government construction throughout the world. I used to work as a contract liaison officer, making sure deadlines were met, so the company could get their payments on time from the government. If it isn't in the contract, word for word, there is usually a legal mechanism to get more money and time from the government. I'm sure Dominican contractors are experts on this type of action.
    The companies that have the contracts to build the schools do not have the contracts to fill them with desks, computers....etc., at least not in most cases. I know an engineer here in Jarabacoa that was awarded a contract to build a school in Constanza. All his family and buddies were acting like he won the lottery; guess he did.
    As someone who is currently adding on to the school we built last year I can tell you it is expensive but I know it will be much cheaper, and better built than most of the government schools.

  6. #5
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    Quote Originally Posted by the gorgon View Post
    Dominican Govt. agency overseers find 90% cost overrun





    Santo Domingo.- The Oversight Committee of the State Works Supervisory Engineers Office (OISOE) on Monday said construction cost on some schools have skyrocketed 90% above budget, in violation of the law.

    In a letter sent July 14 to Presidency chief of staff Gustavo Montalvo quoted by elcaribe.com.do, committee members said the irregularities in some schools are as high as 90% over budget.

    They said the school at the Savica sector of the capital was budgeted at RD$54.5 million but has cost RD$99.6 million thus far, or RD$45.1 million more, for a 82.83% jump.

    "We understand that the process used to allocate the construction of schools does not guarantee transparency in the process of construction. We suggest the lottery process to strengthen and serve to select a short list that will compete by presenting a budget that requires them to work according to what they have committed to do the same," the overseers warn.

    Delayed information

    In the letter, observers Radhamés Mejía, Jesús Moreno, Mariluz Arias, Addys Then and Daniel Óscar also complained of delays to hand over requested information on the current status of constructions.

    i posted, some time back, that the push to build all these schools by the Medina administration had a nice, cheery countenance, but it was just a cash cow for the kleptocratic elements which form the government. well, here you have it. 90% cost overruns, in certain cases.

    so, the arithmetic is simple. when you spend all the money on fixed capital expenditure, there will be nothing left for recurrent expenditure, namely paying teachers of any meaningful quality.

    there are several working papers which state, with cross country studies, that the more corrupt a government is, the more it spends on fixed capital projects. here you have some proof.
    The thing the article fails to mention on the same report is that costs overruns for the highest listed works were mostly due in part to changes needed to meet constructions codes for seismic reinforcement. The entire building sites needed to have steel and reinforced concrete columns inserted deep into the ground for the whole thing to be safe. This increased the costs as the materials needed to meet the codes was increased and an entire new contractor called in to perform the needed modifications. The OISOE approved the changes on the original contracts.

    As far as the rest of the cost overruns by an average 25% reflected the higher prices of construction materials and the depuration of the subcontractor's workforce to meet new enforcement guidelines for legal workers.

    The two schools will have 2 buildings of 3 floors each, making the seismic reinforcements imperative. Each of them were engineered with the capacity to expand 2 more floors in the future if needed.
    One Dominican at a time please!


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    You failed to mention how the building codes were overlooked in the first place. Did the DR just start having earthquakes yesterday?

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    Quote Originally Posted by PICHARDO View Post
    The thing the article fails to mention on the same report is that costs overruns for the highest listed works were mostly due in part to changes needed to meet constructions codes for seismic reinforcement. The entire building sites needed to have steel and reinforced concrete columns inserted deep into the ground for the whole thing to be safe. This increased the costs as the materials needed to meet the codes was increased and an entire new contractor called in to perform the needed modifications. The OISOE approved the changes on the original contracts.

    As far as the rest of the cost overruns by an average 25% reflected the higher prices of construction materials and the depuration of the subcontractor's workforce to meet new enforcement guidelines for legal workers.

    The two schools will have 2 buildings of 3 floors each, making the seismic reinforcements imperative. Each of them were engineered with the capacity to expand 2 more floors in the future if needed.
    A new HIGH in SPIN!
    Even for PEE CHAD DOUGH!!!!

    90% over budget for earth quake regulations????
    Must have been the same guy who built the useless parking garage at the Gov.Univ. in SD!

    Say "HI" to him at your next family reunion here!!!!

  11. #8
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    Quote Originally Posted by windeguy View Post
    You failed to mention how the building codes were overlooked in the first place. Did the DR just start having earthquakes yesterday?
    thanks, windy. you saved me the trouble of asking him that one myself.

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    Quote Originally Posted by windeguy View Post
    You failed to mention how the building codes were overlooked in the first place. Did the DR just start having earthquakes yesterday?
    No, but if they changed the requirements, especially after construction started it would require a redo, an expensive one.

  13. #10
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    Quote Originally Posted by windeguy View Post
    You failed to mention how the building codes were overlooked in the first place. Did the DR just start having earthquakes yesterday?
    Revised code requirements introduced for seismic design end 2012, but I doubt this explains such a large overrun.

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