I guess they went with percentages on these lines so the end number wouldn't look so large? Nevertheless, a 6% inflation contingency comes to $1,369,427. Inflation? What inflation? Where does this money end up and who accounts for it since inflation is negligible?
Soft cost are factored at 25% or $5,706,118. This is where the soft costs are going:
Architectural Fees for Remodel (different than new) 5.5 to 7%
Mechanical and Electrical – 2 to 3% (pending scope)
Permits – 1%
Testing – 1%
Misc Survey – 1% (varies on area)
Bond – (in today public bid economy) 1%
Misc Owner costs (Staff and misc needs during the project can be charged to a project if district chooses) – 2%
Legal Fees – .5%
Insurances - .5% (depends on your policy in place)
Commissioning per the State of MN – 1 %
Plan Reproduction/advertising for Competitive bidding – .5%
Design Contingency – 5% (highly recommend for remodel)
Construction Contingency – 5% (highly recommend for remodel)
I still can't get my head around the fact 10% of this entire project or $2,282,427 is earmarked for Design & Construction Contingencies! I thought Kraus Anderson was the best of the best and we paid $500,000 extra to make them even better? Maybe they are; just not their estimators?
Would love to see a full accounting for the 1% or $228,242 to Ehlers?!
Would love to see a receipt for every paperclip the 2% miscellaneous owner's slush fund buys!
See why we need a project accountant with an online ledger?
Don't forget to fill out the survey on the right side of the page!!!!
Love the survery Don!
ReplyDeleteLet's see...Kevin, Dave & Dave or..........
ReplyDeletehttp://www.accountingtools.com/project-accountant-job-descrip
Position Description: Project Accountant
Basic Function: The project accountant position is accountable for monitoring the progress of projects, investigating variances, approving expenses, and ensuring that project billings are issued and payments collected.
Principal Accountabilities:
1.Create project accounts in the accounting system
2.Maintain project-related records, including contracts and change orders
3.Authorize access to project accounts
4.Authorize the transfer of expenses into and out of project-related accounts
5.Review and approve supplier invoices related to a project
6.Review and approve timesheets for work related to a project
7.Review account totals related to project assets and expenses
8.Investigate project variances and submit variance reports to management
9.Report on project profitability to management
10.Create or approve all project-related billings to customers
11.Investigate all project expenses not billed to customers
12.Approve the write off of any project-related billings that cannot be billed to or collected from customers
13.Close out project accounts upon project completion
14.Create and submit government reports and tax returns related to projects
15.Compile information for internal and external auditors, as required
Desired Qualifications: A bachelor's degree in business or engineering, with detailed knowledge of project contracts and change order documents. Must have excellent communication and writing skills, and at least three years of experience in project accounting.
Supervises: None
PS:
ReplyDeleteThe desired qualifications pretty much rules out all of the three amigos.
I agree that the public deserves to have someone reviewing all the expenditures for them. The concern is that if the district hires this person that he or she will likely give the report the district would like us to hear. It is like asking the wolf to guard the chicken coop. If this person could be hired jointely by Mound and Minnetrista it would be a much better safeguard.
ReplyDeleteAgreed, hence the word "independent." :) Independent of the district's manipulations.
DeleteThis is exactly what is needed DM but you are nuts if you think those shysters would agree to this. Why would they? They have everything the way they want it right now and the shrinkage will end up right where they want it to. Great idea, but its like asking a shop lifter to help Nordstroms install security cameras on his day off.
ReplyDeleteKevin will never allow this. I know, I'm on the inside.
ReplyDeleteWhat do you mean Kevin will never allow it?!? I thought he was supposed to serve in the taxpayers best interest. Is he now, along with being an imbecile, a dictator? Boot his yellow arse out of there. He's nothing but a waste of time and money.
Delete