Audit Criticizes Construction Management

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Los Angeles City Controller Laura Chick issued a highly critical audit Thursday of the city’s management of contracts for the construction of the new Los Angeles Police Department headquarters building.

Citing skyrocketing costs, Chick said in the audit that the city’s Bureau of Engineering should have made more outreach efforts to private contractors instead of accepting a single bid from Sylmar-based construction contractor Tutor-Saliba Corp.

“It is unthinkable that a project as major as the new police headquarters would only have one bidder,” Chick said. “The city should have an aggressive outreach program to pursue contractors and encourage them to apply for business.”

The headquarters was projected to cost $303 million when approved by the City Council in 2003, but due to delays, rapidly rising materials costs and changes in scope costs have risen to $454 million.

The audit also criticized the way the Bureau of Engineering drew up consulting contracts with Sacramento-based Vanir Construction Management Inc. and the joint venture of DMJM Design a unit of Los Angeles-based AECOM Technology Corp. and Denver-based Roth Sheppard.

Among the contract limitations: the Bureau of Engineering did not appear to insist on cost estimates from Vanir Construction and DMJM Design/Roth Sheppard up front and the contract language did not appear to spell out in the clearest terms possible the expectations for the contractors to meet.

Cora Jackson-Fossett, spokeswoman for the Department of Public Works, which oversees the Bureau of Engineering, said the department intended to review and implement the recommendations. “We always appreciate any type of recommendations and positive input that we can get,” she said.

The new LAPD headquarters building intended to replace the quake-damaged and aging Parker Center is located across from the Los Angeles Times building. Construction began in 2006 and is set for completion in May 2009.

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Howard Fine
Howard Fine is a 23-year veteran of the Los Angeles Business Journal. He covers stories pertaining to healthcare, biomedicine, energy, engineering, construction, and infrastructure. He has won several awards, including Best Body of Work for a single reporter from the Alliance of Area Business Publishers and Distinguished Journalist of the Year from the Society of Professional Journalists.

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