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See also Bayswater & Main Roads major cost blowout tender issues |
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| "Possible cost blowout if WA Govt's Western Power does the job | ||||
| Underground POWER |
Safer streets, footpaths & lighting | |||
| Improved home values | ||||
| Bigger trees - less pruning costs | ||||
| Better natural environment | ||||
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3 issues: 1. Bayswater vs Main Roads This is a clear example that private contractors are not necessarily cheaper than doing tasks inhouse. Recently in the Eastern Suburbs Reporter, There was a front page story about the drastic cost differences between Main Roads (using private contractors), and the City of Bayswater (doing the job inhouse), to construct a pathway. Same path, same speci .... Main Roads $4.5 million. City of Bayswater $605,000. 2. Success Hill Reserve opportunity Bassendean is spending more than a million dollars on the reserve, (including a drain) With such a reasonable budget, you would think it possible that a Council might strategically consider doing the job themselves and not paying for the profits of a contractor, not to mention another 10% for GST. Any equipment used in the project would surely be of benefit for other projects in the Town. 3. Western Power costings are too much The Bassendean Town Council is using 'old' 2007 estimates when it suggests that lot owners will only have to pay their half which was estimated at $5,000 or something like that sort of figure. Look at the graph and it is quite easy to imagine what even 50% of the costs might be after 2010 for our share of underground power if we accept the Western Power 'package'. (They use private contractors only). And if the Mains Roads situation is considered, then you would have to wonder about the Western Power pricing strategy. When the company sets the price, then says that they will pay 25% of the costs, it just makes you wonder if their price is inflated to cover their 25%. |
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Looking at the above graph, consider the Western Power split at April 2006. That is the start point. The recent estimate based on City of Joondalup is the pink line, (solid and dotted) $6350 in Sept 07. The Town of Bassendean is hoping to start the undergrounding program in 2010 or afterwards. The price could be $12,000 or more for each lot holder when doing it the 'Western Power' way. An alternative, like the Bayswater City example, would be to do the power undergrounding by Bassendean inhouse, at a fraction of the cost. |
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