We’ve uploaded the main parts of the LIST OF ISSUES in the saga of Glen Eira City Council versus Hansen Yuncken. We make no judgement on the rights or wrongs of either party (that is for the courts and/or mediation). All we can say is that it is extremely illuminating to read the claims and counter claims and then compare this with the continual spin that was perpetrated on unsuspecting ratepayers. Lipshutz’s continual reassurances that council was ‘on top’ of things now certainly rings hollow in the face of what these documents reveal. There is more here than simple weather delays, the finding of asbestos, and changing pool tiles as we were led to believe up until November 2011. Please read and then ponder what this reveals about overall management of such a project.

COUNCIL’S CASE (uploaded here)

There are 3 main facets to Council’s claims – liquidated damages basically for late completion/handover; defective works and variations from the contract. They are also after damages and costs.

For liquidated damages Council is demanding – $1,589,000 plus another $766,000

For utility charges Council is claiming – $137,218.92

For ‘variations’ to the contract Council is claiming – $453,313.44 plus another $321,057.00

For ‘defective work’ council is claiming – $91,319.00

Council finally claims ‘loss and damages’ for $3,084,846.00

HANSEN YUNCKEN’S CASE (uploaded here)

HY deny many of the dates submitted by council as late for handover

HY ‘does not admit’ that a ‘verbal conversation’ took place regarding utility costs payable by HY and nor was the company liable to pay for these costs

On ‘defective’ claims HY denies, disputes and concedes some of these

HY counter claim for $3,001,019.60 ‘on account of variations to work under the contract’

Readers should focus on the concluding tables that HY has supplied in the 244 page document.

COMMENT

The far more vital question concerns governance. For example:

  • What have councillors been told in the past 3 years? In what form was any information provided – written, verbal, presentations?
  • What questions did councillors ask and were they answered?
  • Have any councillors ever clapped eyes on the contract?  Did any councillors ask to see and read the contract?
  • Have any councillors ever seen the List of Issues?

Answers to these questions will reveal fully how this council functions and its governance.

 

 

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