BUILDING COSTS

Evening Post, Volume CXXXVI, Issue 74, 24 September 1943, Page 6

BUILDING COSTS

UNIT PRICE SYSTEM

STATEMENTS REFUTED

Much concern was expressed at the meeting of the New Zealand Federated Builders' and Contractors' Association at Wellington yesterday at misleading and incorrect statements that have recently appeared in the Press, stated the secretary (Mr. W. J. Mountjoy) today. Reference was also made to the incorrect and misleading statements made by. various politicians during their election campaigns to the effect that huge profits had been made by builders. "The most recent statement referred to was one that appeared in connection with the ambulance station erected by the Palmerston North Hospital Board," said Mr. Mountjoy. The published statement was to the effect that Mr. J. A. Nash, chairman of the Palmerston North Hospital Board, said it was time we had a change from the schedule system of building. It was also stated at the meeting that the estimated cost of the ambulance building was £4000, but under the schedule system it had cost £6000. This statement gives a totally wrong impression. If buildings had not been erected under the master schedule on a unit price basis the cost would have been much greater. "Had not the master schedule or unit price system been in operation during the major portion of the defence works programme the cost of the operations would have been much greater. The schedule presented an orderly system with reasonable return to the builder, and notwithstanding all the difficulties that had to be confronted because of the urgency of the operations, all the difficulties that did exist were overcome, and the work proceeded and was completed with credit to the Commissioner of Works. NO PAYMENT FOR MISTAKES. "Statements have been made and published that builders have been paid for their mistakes. Such statements are incorrect. If a builder is paid under the schedule for the work he performs he cannot claim payment for alterations to his work, as such are not provided for in the schedule. On the other hand, it is believed that many structures have been built, altered, pulled down, and removed due to changing war conditions and the requirements of the services, but not because of mistakes of the builders Therefore, such allegations should not be laid at the door of the builder, who is paid only for the work he performs. "Before payment could be made to builders for alleged mistakes it would be necessary to have payment based on a cost plus basis, li.it such a system has not been in operation in connection with defence construction work. The schedule system is based on a method of payment by results, and not on a cost plus basis. Therefore it is most unfair for incorrect statements to be published in view f the fact that they cast a slur upon the building industry, which came forward and threw in its full weight with the Government to produce the defence and essential buildings required in this Dominion."