Infrastructure Projects Are Making Contractors Rich

Here’s a great example of the public purse being highjacked by bad estimates and poor cost projections. A $2.3 million project will now likely cost almost 5 TIMES that original estimate.

The same city – London, Ontario – is working on convincing the public to invest in a bus plan that will alter the shape of the city. At least for special interest groups.

The ‘estimate’ is projected at $500 million. A nice, neat round number that all of the politicians at different levels can get their heads around.

By the time the project is half way through, I’m certain it will be rounded up to a nice, neat number, say $2 billion, in order to finish it.

Contractors and other companies are holding municipalities hostage to these outrageous infrastructure plans and it SIMPLY HAS TO STOP.

I have suggestion. The federal government, with the help of the provinces, needs to enforce and pursue any company or organization that DOESN’T come within budget. Any overspending becomes subject to a complete public audit and results will be posted online for the public to review. If the public feels the additional expenses warrant additional spending, then the federal government will permit all levels of government to continue spending the money.

If the public DOESN’T feel the expense is warranted, all levels of government are entitled to 100% return on what they invested with no additional cost of doing business.

If you want to get public dollars, be prepared for the down side.