Quote:
Originally Posted by Locke
How the hell could there be a cost overrun? They havent even started building the goddamn thing yet and its already $40M over budget?....
|
They go to an architect and say we are aiming for a project that costs $450M. Architect roughly designs the building. Building is priced. They find out it costs more than the original $450M.
It should also be said that the Oilers already cut some stuff to get down to this new number that's still more than the $450M budget.
So they are already over budget before starting, and that doesn't include potential overruns when construction actually starts. Usually there would be a contingency fund built into the budget to cover such stuff, but I don't know whether that's been included yet or not.