Monday, December 26, 2016

Incentivizing a rip-off…





Capizzi was claiming for a year that the demolition and construction costs for the Lincoln School Building would be about $7.1 million and  architectural fees about $400,000 (total $7.5 million).  He actually told the architect that Lodi had $7.5 million to spend before the architect was even hired.


Capizzi showed 12 bids on last week’s resolution.  Of the twelve, NINE bids were below his estimate.  The lowest bid was $1,046,500 below Capizzi’s estimate (15% lower).  Trustee Mara was right to question the difference. How can you be that far off?


Marc Capizzi cannot be trusted.  He pads his budgets.  He inflates project costs.  He is off by millions.


With all the architects in New Jersey that specialize in school construction, Capizzi always goes to SSP.  Capizzi always awards them a NO BID contract (never competitive).  Capizzi doesn’t pay them for the hours that they put in or the work that they do.  He pays them a percentage of the total project cost.  In the case of Lincoln School, he is paying them 5.9%.


Capizzi’s NO BID engineers and NO BID architects are given an incentive to inflate project costs.  They win when the contractor overspends.  They signal for the contractor to overspend by handing them inflated estimates.  The more expensive the material, the more they get paid.  The more corrective measures, the more they get paid.


5.9% of $1,046,500 is $61,743.50.  Marc Capizzi was fine overspending $1,046,500 on the project.  He was fine overpaying $61,743.50 on architectural fees.


It’s not his money.  100% is Lodi tax dollars.


Marc Capizzi is unfit to be in charge of our $64,000,000 school budget.  He is unfit to oversee multi-million school projects that he never sought public approval.