Auditor-general Grant Hehir highlights state’s $900 million in construction cost blow-outs

The auditor-general has rebuked the state government for its management of major construction projects, citing $900 million worth of recent blow-outs.
A report released on Thursday by auditor Grant Hehir into large construction initiatives found that the cost of 50 major projects built between 2010 and 2014 increased by about 7 per cent, despite all projects including large “contingencies” for over-runs in their budget.
“The audit found that the independent assurance given to the NSW Government and sponsor agencies on the viability of large capital projects throughout their life-cycle is inadequate,” Mr Hehir said.”Government policy is regularly not followed and not properly communicated to those responsible for implementing such policy.”
The report follows a separate examination by the auditor-general into the $15 billion WestConnex project. That review cited multiple deficiencies in the way the motorway had been planned, overseen, and developed.In response to the WestConnex review, agencies argued the 33-kilometre motorway required different arrangements to usual government processes because of its size.”This argument cannot be applied to the projects examined in this audit,” Mr Hehir said.He examined 88 construction projects, each