Software
to help agency monitor construction
costs
Friday, October 28, 2005 • BY
DUNSTAN McNICHOL • Star-Ledger
Staff
Five years and $4 billion into its
mission of rebuilding public schools across New Jersey, the
state's Schools Construction Corp. has decided to buy a
computer program that will track how much each project is
costing.
The decision, announced at a SCC board
meeting this week, comes as the agency is retooling in the
face of charges that it lacked basic financial controls and
was vulnerable to waste and abuse.
"Obviously it's in keeping with our
increased attention to accountability, cost efficiency and
controls," said Kevin McElroy, spokesman for the SCC. "This
gives us real-time information that will allow us to better
manage our projects and to bring them in under budget and on
time."
The new system, the Primavera Expedition,
will enable the SCC to track expenditures and changes in
each of the hundreds of school projects currently under way.
The agency's current tracking system is "highly labor
intense" with information scattered across various spread
sheets, according to a memo outlining the new
purchase.
"The corporation's current process for
managing the design and construction of schools lends itself
to significant exposure for budget and timeline overruns,"
the Oct. 26 memo states.
A Star-Ledger analysis in February, which
found that schools built by the state's SCC were costing 45
percent more than schools built by local school districts,
showed that cost overruns and change orders had increased
construction costs by 20 percent.
In April, after a review prompted by The
Star-Ledger report, state Inspector General Mary Jane Cooper
issued a scathing report that concluded "the agency is not
properly equipped with the internal management, financial
controls and personnel necessary to ensure that the money is
properly and appropriately spent."
Among the things Cooper singled out for
criticism was the agency's ability to track costs and the
more than $540 million in change orders for school
projects.
"In one project examined during this
inquiry, despite several days notice of our meeting, the
responsible project officer was unable to provide accurate
information about the status of the months-old project that
is forecast to cost in excess of $40 million," the Inspector
General's report noted.
The new computer system cost $390,000 and
will allow managers and consultants to monitor the status of
change orders and the actual amount spent on individual
school projects.
The system is used by the New York City
schools construction program and the New Jersey Department
of Transportation.
The state launched its overhaul of public
school buildings in 31 needy communities in 2000, under
terms of a state Supreme Court order. In July, officials
announced the full $6 billion authorized for the program has
been allocated, with construction planned for fewer than
one-third of the 160 schools needed in the 31
communities.
Lawmakers are considering authorizing
billions more for the program.
Acting Gov. Richard Codey, who ordered
the Inspector General's review in February, said he was
pleased to see more progress at the corporation.
'We're pleased that the Inspector
General's recommendations have already resulted in
substantial reforms in financial accountability at the
agency while new schools continue to be built," said his
spokeswoman Kelley Heck.
Dunstan McNichol covers state government issues. He may
be reached at dmcnichol@starledger.com or (609) 989-0341.
© 2005 The Star-Ledger. Used by NJ.com with
permission.
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