Hon. Barry House questions the Department of Housing and Works' 17.5% fee for managing construction projects funded by the federal Investing in Our Schools program. The response details that the fee covers operational costs for regional services.

AnsweredQoN 318Legislative Council
Asked
23 May 2006
Portfolio
Housing and Works

QuestionView source ↗

DEPARTMENT OF HOUSING AND WORKS - CONSTRUCTION FEE
(1) What does the Department of Housing and Works’ fee of 17.5 per cent of the cost of construction involve, when a Western Australian state school has successfully applied for federal government funding under the Investing in Our Schools program? (2) How is the 17.5 per cent fee arrived at? Hon ADELE FARINA

AnswerView source ↗

On behalf of the parliamentary secretary representing the Minister for Housing and Works, I thank the member for some notice of this question. (1) The 17.5 per cent Department of Housing and Works’ fee represents the cost recovery component for managing works on behalf of agencies. In regional areas, the Department of Housing and Works manages maintenance and minor works projects directly through its network of 14 country offices. Management fees are 17.5 per cent of project costs for low value works and less for high value projects, reflecting the higher costs for provision of services through a dispersed network in rural and remote areas. The Department of Education and Training has directed schools to use the Department of Housing and Works to manage all Investing in Our Schools funded infrastructure-related projects, in a similar way that state-funded and school-funded works have always been managed. (2) The 17.5 per cent fee was determined to recover the Department of Housing and Works’ operational costs for regional services, including staff salaries; office accommodation; vehicles; communication systems; works management and financial systems; and head office support.
(2) How is the 17.5 per cent fee arrived at? Hon ADELE FARINA replied: On behalf of the parliamentary secretary representing the Minister for Housing and Works, I thank the member for some notice of this question. (1) The 17.5 per cent Department of Housing and Works’ fee represents the cost recovery component for managing works on behalf of agencies. In regional areas, the Department of Housing and Works manages maintenance and minor works projects directly through its network of 14 country offices. Management fees are 17.5 per cent of project costs for low value works and less for high value projects, reflecting the higher costs for provision of services through a dispersed network in rural and remote areas. The Department of Education and Training has directed schools to use the Department of Housing and Works to manage all Investing in Our Schools funded infrastructure-related projects, in a similar way that state-funded and school-funded works have always been managed. (2) The 17.5 per cent fee was determined to recover the Department of Housing and Works’ operational costs for regional services, including staff salaries; office accommodation; vehicles; communication systems; works management and financial systems; and head office support.
Hon ADELE FARINA replied: On behalf of the parliamentary secretary representing the Minister for Housing and Works, I thank the member for some notice of this question. (1) The 17.5 per cent Department of Housing and Works’ fee represents the cost recovery component for managing works on behalf of agencies. In regional areas, the Department of Housing and Works manages maintenance and minor works projects directly through its network of 14 country offices. Management fees are 17.5 per cent of project costs for low value works and less for high value projects, reflecting the higher costs for provision of services through a dispersed network in rural and remote areas. The Department of Education and Training has directed schools to use the Department of Housing and Works to manage all Investing in Our Schools funded infrastructure-related projects, in a similar way that state-funded and school-funded works have always been managed. (2) The 17.5 per cent fee was determined to recover the Department of Housing and Works’ operational costs for regional services, including staff salaries; office accommodation; vehicles; communication systems; works management and financial systems; and head office support.
On behalf of the parliamentary secretary representing the Minister for Housing and Works, I thank the member for some notice of this question. (1) The 17.5 per cent Department of Housing and Works’ fee represents the cost recovery component for managing works on behalf of agencies. In regional areas, the Department of Housing and Works manages maintenance and minor works projects directly through its network of 14 country offices. Management fees are 17.5 per cent of project costs for low value works and less for high value projects, reflecting the higher costs for provision of services through a dispersed network in rural and remote areas. The Department of Education and Training has directed schools to use the Department of Housing and Works to manage all Investing in Our Schools funded infrastructure-related projects, in a similar way that state-funded and school-funded works have always been managed. (2) The 17.5 per cent fee was determined to recover the Department of Housing and Works’ operational costs for regional services, including staff salaries; office accommodation; vehicles; communication systems; works management and financial systems; and head office support.
(1) The 17.5 per cent Department of Housing and Works’ fee represents the cost recovery component for managing works on behalf of agencies. In regional areas, the Department of Housing and Works manages maintenance and minor works projects directly through its network of 14 country offices. Management fees are 17.5 per cent of project costs for low value works and less for high value projects, reflecting the higher costs for provision of services through a dispersed network in rural and remote areas. The Department of Education and Training has directed schools to use the Department of Housing and Works to manage all Investing in Our Schools funded infrastructure-related projects, in a similar way that state-funded and school-funded works have always been managed. (2) The 17.5 per cent fee was determined to recover the Department of Housing and Works’ operational costs for regional services, including staff salaries; office accommodation; vehicles; communication systems; works management and financial systems; and head office support.

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