Sunday, March 29, 2009

DPR Contract "Hides" Known Increases

The "new" DPR contract has significant potential for later cost increases. The proposed contract has a baseline amount for DPR of about $43.1 million "based on an estimated Substantial Completion Date of July 1, 2011." [Section 5.2] If the Final Project Schedule indicates that the completion date will be later, then DPR compensation is increased.
http://www.pph.org/Media/File/
Board_Meetings/ip_20090331_288.pdf
(pdf slide 42 of 129)

The Final Project Schedule from DPR is not due until July 1, 2009! [Section 2.4.4]

Referring back to the schedule I analyzed in my post below on May 14, 2008, the start of the steel structure was delayed from July 1, 2008 to mid-November, a 4 1/2 month delay. I believe it would be extremely difficult to meet the "estimated" completion date of July 1, 2011, given the already known delays. Further, numerous statements from PPH officials have placed the completion date well into 2012.

A year ago, this change was supposed to save money for PPH:
"Eight months after it broke ground on its new hospital, Palomar Pomerado Health is preparing to change construction managers in hopes of shaving up to $50 million off the cost."
PPH to change contractors on hospital construction project

It is quite interesting how the North County Times and the Union Tribune continues to print whatever fiction PPH feeds them!

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