SML - Synlait Milk Ltd

[sb9]

In the likely case that Tetra Pak need to find a new Contractor to undertake the design & build of the Pokeno site, you would expect that costs increase due to 'escalation' that is present in the market at the moment. Any costs associated with bringing in a new Contractor should sit with Tetra Pak and basedc on yesterdays SML announcement I believe that to be the case.

Absolutely, time overrun yes but not cost overrun. Plus they'll have cover for any liability arising out of project delays and associated compensation from Tetrapak.

[whatsup]

I dream of tetrapak being a listed company and that i bought early,

https://www.tetrapak.com/

One of Europe's oldest and most valuable companies.

[minimoke]

Minimoke I believe that RYM, retirement villages are normally constructed with minimal delays or budget blowouts.

They speed up or slow down construction depending on demand. Makes it a bit of a moving target. (Disc - not suggesting RYM dont do a good job!)

[Beagle]

OCA been building in Auckland on time and on budget. It can be done but it is a truly remarkable feat especially at the moment !

[BlackPeter]

Anyone care to point to a construction project that finished on time and on budget? (dontr get me started on the Christchurch Town Hall and our other local construction projects - metro centre didnt even get off the ground due to costing heaps more than planned)

So - you mean it was one of these "the sun will rise tomorrow morning" statements?

While the statement about the sunrise is (highly likely) correct - the assumption about construction projects is not.

The majority of construction projects is completed within time and budget.

Here is a randomly selected performance report for construction projects in Florida:

http://www.fdot.gov/planning/perform...OnTimeCore.pdf

more than 80% in time and more than 90% under budget does not sound bad, does it?

Obviously - it always depends against what you are measuring.

Against the untested and unchallenged wishes of a politician? Sure, these guys are unqualified, incompetent and have a conflict of interest.

But measure against a thoroughly reviewed list of requirements and detailed design and its not that hard to deliver in time and under budget.

TetraPak is a highly successful and experienced company developing packaging solutions not just for Synlait. That's not a one off, but the solutions come basically "off the shelf". What makes you think they don't know what they are doing?

[minimoke]

So - you mean it was one of these "the sun will rise tomorrow morning" statements?

While the statement about the sunrise is (highly likely) correct - the assumption about construction projects is not.

The majority of construction projects is completed within time and budget.

Here is a randomly selected performance report for construction projects in Florida:

Your post might have more value if you referenced NZ.

Somewhere there is a KPMG report that will show in 2010 just over half construction projects came in on time, within budget and in scope. By 2013 this had dropped to 31% and by 2017 had dropped to 29%.

I'll try to source reference but consider since then Fletchers have nearly gone tits up, Hawkins have gone, Ebert obviously (along with Maven Interiors in Christchurch yesterday)

[BlackPeter]

Your post might have more value if you referenced NZ.

Somewhere there is a KPMG report that will show in 2010 just over half construction projects came in on time, within budget and in scope. By 2013 this had dropped to 31% and by 2017 had dropped to 29%.

I'll try to source reference but consider since then Fletchers have nearly gone tits up, Hawkins have gone, Ebert obviously (along with Maven Interiors in Christchurch yesterday)

Never worry about the value of my post as long as you haven't looked into yours ;

You didn't asked for NZ projects ... but apparently - if even according to your reference still 29% of them come in on time and below budget, than your original question was obviously just baiting.

But as you say - little old NZ seems to be bad in constructing things on time and budget. So glad we have a European company responsible for the Synlait projects.

Maybe one can't fix everything with No 8-wire and she'll be right mentality, but this is clearly a discussion for a different threat.

[Valiant]

Absolutely, time overrun yes but not cost overrun. Plus they'll have cover for any liability arising out of project delays and associated compensation from Tetrapak.

Correct! If Synlait's development team are doing things right then the liquidated damages should cover any loss of income should the project be delayed.

[minimoke]

Kaboom - finally some goods news. SML up 4.6% to 1119

The a2 Milk Company ("a2MC") is pleased to announce it will increase its

shareholding in Synlait Milk Limited.

a2MC will acquire, through a subsidiary, an additional ~8.2% of the fully

paid ordinary shares in Synlait from Mitsui & Co. at a price of NZ$10.90 per

share for total consideration of ~NZ$161.8m. This represents a modest

discount to the NZX one month volume weighted average price of NZ$11.16.

[Beagle]

They wouldn't be paying that much if they didn't see significant value even at that price, so yes its great news.