Just 64pc of Building the Education Revolution spent on building

LESS than two-thirds of the $3.4 billion spent on the BER scheme in NSW was actually spent constructing buildings.

BER

LESS than two-thirds of the $3.4 billion spent on the Building the Education Revolution school building stimulus scheme in NSW was actually spent constructing buildings.

Just 64 per cent of the BER funds allocated to NSW public schools went towards building costs. The remainder was spent on "agency and management fees", "unique project costs" and "external works and services".

By comparison, in NSW independent schools, 90 per cent of BER funding went towards construction costs, while the figure was 88 per cent for Catholic schools in the state.

In other states, construction costs ranged from 74 per cent to 91 per cent of all spending on BER projects in public schools.

The scale of the waste under the BER has again come into focus after construction giant Hansen Yuncken, which was responsible for project blowouts under the scheme worth millions of dollars, received an industry award last week for project management for its handling of the BER.

Hansen Yuncken and Engineers Australia, which presented the award, have refused to comment on the award.

In Victorian public schools, 74 per cent of BER spending went towards construction costs, compared with 90 per cent for both Catholic and independent schools in the state.

Victorian and NSW public schools, which accounted for 37 per cent of the entire program, were host to the largest cost blowouts under the stimulus program.

The $14 million taskforce into the BER, headed by former investment banker Brad Orgill, has said much of the costs blowouts in NSW resulted from high fees paid to managing contractors.

"The taskforce view is that the very high total project costs for (the) NSW government reflects in part the relatively high fees paid to managing contractors (20-24 per cent)," it said.

Overdue repairs and infrastructure upgrades added to the vastly inflated cost of buildings delivered to NSW and Victorian public schools, but that figure has not been broken down by the taskforce. Mr Orgill was unavailable for comment yesterday.

The vast differences in building prices paid by government and non-government schools was highlighted by the inquiry's final report, which found NSW government schools had paid on average $3509 per square metre for halls delivered under the program, compared with NSW independent schools, which had paid on average just $1988/sq m.

NSW public schools were charged $3285/sq m for classrooms while NSW Catholic schools paid on average just $2204/sq m.

The former NSW Labor government was criticised over its centralised delivery and poor communication with principals.

The NSW and Victorian governments had not been well-enough skilled to negotiate that use of managing contractors, the taskforce has said.

In the wake of the BER blowouts, NSW Education Minister Adrian Piccoli said last month the government would start a process of consultation on "empowering local public schools".