My Plans - as Promised, How I Will Keep the Arena on Budget

Firstly let me say I have learned a lot about running for politics. I cannot make outcome guarantees BUT I can guarantee that I will do everything within my power and within the scope of the office to make the arena stay on budget.


Now, how I intend to do so.

First let me say that I spent eighteen years of my life working in a Edmonton based Canada wide distribution company including several years as VP of Operations. I created internal accountability protocols; this experience and knowledge will help me reach my goal to keep the arena on budget.

Let me explain how cost overrides are caused in the first place. Here is a Venn diagram of a construction project's potential outcomes:

You want the project to arrive in the white area, on time, on budget and with the expected quality. My second choice would be the Green Area, a little delayed but expected cost and quality. Third choice is Purple, on budget and on time, last choice is blue, on budget. Any final outcome outside the blue circle is unacceptable.

Now let me outline the plan for staying blue, purple, white or green.

Keeping on Budget is about Risk Management. Since we risk cost overrides, we must work to mitigate that risk. In order to do so we need to:

1) receive regular reporting relative to expected due dates. This will allow us to assure that items are on time and on budget. As items begin to lag, we deal with the delays and their causes.

2) Learn the decision making model and hold the decision makers accountable. If one area is causing delays or cost overrides deal with it early.

3) Hold bidders to the terms of their contracts. We have agreed to costs they must live up to them.

4) Avoid distraction costs (no fighting causing delays). Agree on all items well in advance so that if disagreements occur, we deal with them before they cost overruns or delays.

5) Prepare cuts in advance. We need to move quickly and smoothly and we need to make cost cutting decisions on the fly. As an example, lets say we had silk curtains (I chose this example because we do not) and those curtains cost $22M then we know that we can sacrifice them for $2M curtains when the need for cuts arise and we can do so quickly so as to keep the project moving.

That is a small portion of what I intend to do to oversee the arena. This question requires a dissertation but I have done my best to give a concise answer.

I intend to bring a very different skill set to city hall. And I will do everything within my power and the scope of the office to live up to my promises.