If you'd read the article you'd know that the primary reason for the outrageous costs are non-construction related. They're 'soft' costs for consultants, architects, lawyers etc...AND of course, the profits for the contractors.
If projects like these could be done directly by government workers entirely, the costs would be way less - probably about 25%.
The problem is the capitalist system - we do not allow the government to do projects directly - they have to hire contractors who milk the government for all they can - and pay the workers squat.
But if anyone suggested that the government hire all the workers directly and design everything, Conservatives would be SCREAMING SOCIALISM! SOCIALISM!
Maybe we need to bring back the WPA:
Works Progress Administration - Wikipedia
But that would be Soooo Socialist!
You should peek out of your parents basement long enough to get a grip.
Just how many construction engineers/electrical/plumbing/structural engineers do you think work for city governments? And how many skilled contractors do they employ? And heavy equipment?
NONE.
And how much do you think it would cost to employ these 100's of people year round?
The government used to build housing projects, and they were all expensive disasters.
The government has never built anything. They have contracted with private contractors to built housing and I agree that it's a disaster. I will tell you why. Public tendering. Giving out construction contracts to the lowest bidder is the worst idea ever, and its something we insist that governments.
It you look at the adds for bids on big construction projects built by private industry, it will say "
Lowest bid may not be accepted'. You never see this disclaimer on government tender documents. They will only hire the lowest bidder. So sleazy contractors cut costs and corners to build profitably within the contract price, so you get an inferior construction or low grade materials that don't hold up.
Private business won't accept the lowest bid if they feel the work cannot be done properly for the price quoted, or if the lowest bidding company has a dodgy reputation. Governments must accept the lowest bid and take special care and do extra inspections to ensure the public gets what they're paying for, which slows construction and adds to the costs of the project.
I did a 6 month contract with the Ontario government real estate and construction agency working on big dollar government construction and it was eye opening. At one point, I went to the Director of the agency in frustration saying "All of ABC's projects are in trouble. An entire section of the courthouse in {name of city} has to be torn out and rebuilt. This company has never met a single deadline, they're not paying their subtrades, and all of their projects have need repairs before they're finished. Why are we still doing business with these people", and he looked at me and said "Public tendering".
As long as companies submit the lowest bid, the government has to go with it. By finally put a progam in place to bar companies which didn't meet key performance indicatators, like budgets, deadlines and quality control, for bidding and the company I complained about was the first company barred from bidding on government projects for two years. They sued the government.
Big money construction is the most corrupt business in the world. Bar none. Everybody is on the take. Even the truly good and honest builders pay bribes because it's the only way to get things done. Extortion and bribery are everywhere.
