Heading

 
See also Bayswater & Main Roads
major cost blowout tender issues

"Possible cost blowout if WA Govt's Western Power does the job
 
Underground
POWER
Boxes Safer streets, footpaths & lighting  
Improved home values
Bigger trees - less pruning costs
Better natural environment












Graph
  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%.
 
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.