Critic targets construction waste
A large portion of the $54 billion in the economic recovery act for transportation infrastructure is likely to be squandered by the construction industry unless the government implements strict oversight measures, according to a New York-based lawyer who has been a voice for reform of building practices.
Barry B. LePatner, author of Broken Buildings Busted Budgets: How to Fix America's Trillion-Dollar Construction Industry, says construction companies are plagued by cost overruns and missed deadlines.
He urged the Obama administration to create an Infrastructure Czar with extensive construction industry experience to help manage the letting of contracts. Obama has established an Accountability and Transparency Board composed of a chief performance officer and inspectors general and heads of several federal departments, but LePatner questioned whether they have a true understanding of how the construction industry operates.
'The czar should be a savvy construction expert who did not emanate from the construction industry, but who is familiar with the low bid/change order process that consistently drives up costs on construction projects,' LePatner said in a news release. 'This individual must know how critical it is to avoid traps like the fast-track process or guaranteed maximum price traps that never truly guarantee the contract price. A construction expert of this kind will help close the information gap that will likely exist between construction contractors and the policymakers trying to negotiate government contracts.'
LePatner also said the government should insist on fixed-price contracts that pass the risk for poor performance onto the contractors and skilled on-site supervision of subcontractors. And, it should devote some stimulus money to technology that can be embedded in roadways and bridges to provide early warning of needed repairs.
Without these and other reforms, money needed to complete projects will diminish the amount of funds available for future projects or force states and localities to assume more debt, he added.
Critic targets construction waste