R.W. Allen’s Guaranteed Money Pits

IMG_4374Owners like to use a contract delivery method called “Design Build” when they don’t know what the heck they are building, don’t want to take the time to design it before bidding it out, or have a site with too many unknown conditions.  Since they don’t know these things they put a fig leaf of protection against unlimited costs called a “Guaranteed Maximum Price” or GMP. Even in commercial or industrial construction, supposedly knowledgeable in cost controls and with fewer unknowns, GMP contracts are a challenge to administer, because the assumptions the contractor gives in quoting a GMP generally last only days or weeks. Owners would be better off with a pure cost-plus contract with great controls, but the owner’s internal politics command at least a fiction of a fixed price.

Imagine trying to catch a butterfly in a windstorm – that is how elusive the “guarantee” becomes.

In government there is no better money-hemorrhaging device than these contracts, hence perhaps GMP should automatically be understood by citizens as being “Guaranteed Money Pit.”

The City of Augusta, Georgia loves to squander money using GMP contracts, having thoroughly embarrassed itself with the things. Augusta  built a $30 million Convention Center across land the city didn’t own and then had to pay for it with Kitchen Equipment added by change order to a “guaranteed” price,  spent about $50 million on a Municipal Building Remodeling that was supposed to cost $20 million mostly covered by another GMP contract, and built houses in the Laney Walker district with maximum-price, not to exceed contracts that never were adjusted to actual cost.

There were only three finalists selected by Augusta for the Old Green Street Library remodeling, and two of the three had “Allen” in their name. The low bidder who didn’t have “Allen” in its name and who bid on the whole project in its bid, with a Guaranteed Price for all of the work, somehow didn’t get the award. RW Allen, LLC was awarded the work on a piecemeal basis, destroying any figment of a guarantee in this writer’s estimation.

John Allen, nephew and contributor to Congressman Richard W. Allen, is a principal in the Allen-Batchelor firm, which was also on the finalist listing.

District 8 Wayne Guilfoyle said it best “if all three firms are proposing this project the following including the proper scope, met the required schedule and fully capable of completing the RFP why are we selecting the highest bidder?” Then later Commissioner Guilfoyle said “So we’re approving something we don’t have a clue, only a partial.

It must be nice to be R.W. Allen LLC and to have Augusta push you into a yet another money pit where nothing is guaranteed but more profits.

 

No Opting Out of The Greatest Transition

You got your demons, you got desires, well I’ve got a few of my own – Don Henley

Four years ago, a loose coalition of citizens came together to bring a powerful blend of research, online publication, media presence, and reform to Augusta, Georgia and east central Georgia. One started a blog named City Stink, that moniker being a statement of admiration for long-time Augusta Chronicle columnist Sylvia Cooper and her column City Ink, yet impishly labeling the town as the source for all manner of unsavory things. Augusta wasn’t the sole target, either. The archives of Agraynation are amply populated with the City Stink posts, which retain power and utility for change.

As with all human endeavors, members grew weary, lost stomach for the political idiocy, and allowed personal differences to intercede in what was a wonderful community effort. During a nearly two year hiatus, individuals in the group ventured out on various initiatives, successfully defeating SPLOST 7a in Augusta and forcing SPLOST 7b proponents to slash waste, while promising reforms. Members of the Facebook groups Augusta Today and Augusta Political Watch, along with old participants in the City Stink effort, have used the interruption in the fray to observe what transpired in the vacuum and how positive developments proceeded from those action-filled 30 months.

The methods were proven. Mistakes were made, but those were instructive.  Glenn Frey, the late Eagle and co-writer of “One of these Nights” said “We all have our dreams, a vision we hope will come true someday. When that ‘someday’ will come is up to each of us.” Yes, our demons and desires got in the way of continued success, but the need for action has never been greater.

America has lost nearly every institution with direct responsibility to control financial matters and the Rule of Law, foundation of social stability, is for practical matters dead. The Accountants have abandoned financial standards that protected us for decades. The Lawmakers have rewritten the Law to legalize fraud. The Ministry has thrown “THOU SHALT NOT STEAL” out of the Ten Commandments. The Bankers have destroyed one of the two functions that make the United States Dollar “money” and are on the brink of killing the other. The Media have been either silenced or captivated.

We have the tools to overcome it all. The Augusta reformers proved several important techniques and strategies. As great as the challenges are, the technology and methods are here to overcome them all. All that is missing is desire to make it happen.

Laughter is the best medicine and there are bounteous sources of outrageous humor that only need a little attention to have everyone laughing on the way to restoring our cities, counties, states and America. We are in the midst of the greatest transformation and transition in 400 years, if not all of human history.

“Agraynation” perhaps sounds a lot like “aggravation” to some. The subscribers list is stale, yet there are many in the community and state included in the automatic notification feature. Posts may be coming faster than you like via your email account. If so please UNSUBSCRIBE if you get one notification too many. Please accept my apology if notification that accompanies this post is that “one too many.”

Thanks to everyone for you encouragement, support, and participation. And……..welcome back to the fray.

– The Arrowflinger

 

After Lee Anderson Blew Off Clark Howard….

By The Arrowflinger

In 2010 Georgia House District 117 Representative Lee Anderson was getting calls from constituents with concerns about the upcoming House vote on Senate Bill 31, the infamous law that delighted more than seventy  Southern Company  lobbyists by giving the company’s Georgia Power Company over $1 billion in advance profits and a guaranteed 11% return on nuclear plant Units 3 and 4 at the Vogtle generating complex near Waynesboro. Famous consumer advocate Clark Howard begged Lee and the rest of the legislators to vote no and he did so repeatedly.


Seventy Lobbyists? With Lee it was the 71st lobbyist, his Southern Company-employed daughter, who mattered more than the folks back home.

Anderson of the 117th voted AYE.

These days Lee is campaigning for the vacated Georgia Senate District 24 seat waving his phone promising voters that he will answer the phone and call them back. He isn’t saying when. He called this constituent after his vote for SB 31.

Now where are we? Unit 3 was to have begun operation last month, but recent updates have the unit only 26% complete with a $900 Million Cost Overrun to be paid by ratepayers when Georgia Power gets its way after the May elections.

Contractors have been paid out to the 60% completion level, despite the unit being only 26% complete. This is the tight construction cost control the 70 lobbyists touted?

Clark Howard was right, but Lee Anderson’s 71st lobbyist home economics were the sizzle in the bacon for House District 117 residents, who got $109 a year higher invoices.

He isn’t much good at writing bills but is wonderful at raising them.

After Lee Anderson blew off Clark Howard, how are you going to pay your power bill and what is that hay farmer going to toss in next?