BUILDING COSTS

Manawatu Standard, Volume LXIII, Issue 258, 29 September 1943, Page 4

BUILDING COSTS

MASTER SCHEDULE SYSTEM

OPERATION EXPLAINED.

(P(A.) CHRISTCHURCH, Sept. 28. Recent statements by election candidates and others concerning the system of building construction contracting were described torday by Mr C. S. Luney, president of the New Zealand Builders and Contractors’ Association, as incorrect and misleading. The association, lie said, had authorised him to make a reply to these statements which implied that huge profits had been made by builders and which gave the public an entirely distorted view of the position. The most recent statement was made by Mr J. A. Nash (chairman) at a meeting of the Palmerston North Hospital Board when he said it was time there was a change from the schedule system of building. At tins meeting it was* stated that the estimated cost of an ambulance building was £4OOO, but under the schedule system it had actually cost £6OOO. The truth was that, if the buildings had not been erected under the master schedule on a unit price basis, the cost would have been much greater, said Mr Luney. “Had not the master schedule or unit price system been in operation during the major portion of the defence works programme the cost of operations would have been much greater.” said Mr Luney. “The schedule presented an orderlv evstem with a reasonable return to the’builder and, notwithstanding all the difficulties that had to be met because of the urgency of the work, these were overcome and the work completed with credit to the Commissioner of Works.” , Statements have been made and published that builders had been paid for their mistakes. “Such statements are incorrect,” Mr Luney said. If a builder is paid under the schedule for 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 because of changing war conditions and requirements of the Services, but not because of mistakes by builders.” Such allegations should not be laid at the door of the builder, who was paid only for the work he performed. Before payment could be made to builders for alleged mistakes, it would be necessary to have payment on a cost plus basis, but such a system bad . not been in operation in connection with defence construction work since the introduction of the master schedule system. The schedule system was based on a method of payment for results and not on a cost plus basis. “Such incorrect statements cast a most undeserved slur on the building industry, which came forward and threw in its full weight with the Government to produce the necessary defence and other essential buildings required in the Dominion,” Mr Luney said.

Mr Nash stated to-day that the Hospital Board was very dissatisfied at having to build under the schedule system and was more than satisfied that the cost was greater than when it built under die ordinary competitive scheme by calling for tenders. This had been clearly demonstrated to the board.