Construction costs, which have increased at a quick pace over the past year, have been blamed for the increased costs of the project for the past few months. With costs now soaring--some reports put the overrun as high as $100 million--the MCCA is reportedly upset that it was not alerted earlier to the problem by the building team. Because of the $14-billion overrun on the Big Dig, the MCCA has been under intense pressure not to go over budget on this project.
Building has already begun on the 60-acre site, with 75% of the design work completed. Now the MCCA board has ceased activity in an attempt to see how costs could be kept under control. The board had also stated at one time that it would not ask the state for more money for the project but it is not clear whether they will be able to stick to that vow.
KPMG was brought on board last summer to do a management study of the project. In addition, the construction manager, led by Clark Builders, and Tishman Construction, which represents the owners, also did reviews of the project. The latest budget numbers, which detail the cost overrun, are reportedly from Clark and Tishman.
Attempts to cut costs have already been made on the project. The steel bid was reduced $33 million, but it was still $11 million more than originally planned. A rubber surface will be used for the roof rather than steel--which is more expensive--as originally planned. A revised budget figure is due from the construction team by the next monthly board meeting on Jan. 26.
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