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SCHOOL CONSTRUCTION CEO PRESENTS IMPLEMENTATION PLAN TO BOARD FOR APPROVAL

Proactive plan takes necessary steps to find efficiencies; Establishes Chief Financial Officer

(TRENTON) - In an effort to improve efficiency and accountability in the school construction program, New Jersey Schools Construction Corporation (SCC) Chief Executive Officer John F. Spencer presented an implementation plan today to the SCC Board of Directors for its approval. The plan, which acts on Inspector General Mary Jane Cooper’s recommendations released last month, details the ways in which the SCC will operate more cost-effectively, including the creation of an Office of the Chief Financial Officer.

“Over the past two weeks, my staff has been working diligently to produce a responsive and proactive implementation plan that addresses the Inspector General’s concerns,” said Spencer. “We have taken every step necessary to fix the problems identified in her initial report, and we will continue to take every step necessary to ensure that the public’s dollars are being spent wisely.

“These are the first of many reforms we will be implementing at our agency to regain the public’s trust in the largest public works program in New Jersey’s history—one that will benefit the children in this state for many years to come,” continued Spencer.

Among the measures proposed in the plan are:

  • Hiring a Chief Financial Officer to oversee all financial and accounting functions.
  • Discontinuing immediately the practice of singular approval of contract awards. The SCC will also further revise dollar thresholds downward for each approval level, which will be presented for Board consideration at its meeting on May 25.
  • Eliminating all employee bonuses that are beyond the standard salary and benefit structure that applies to other public employees.
  • Studying the possible consolidation of the SCC’s regional offices. The study’s recommendations will be presented at the June 22 Board meeting.
  • Substantially reducing the use of outside temporary professionals over the next 30 days and terminating the current outside employment contract by the end of July.
  • Supporting the addition of the two public board members appointed yesterday by the Governor.
  • Developing a policy that will define when and how the SCC will seek recovery of monies that are disbursed as a result of errors and omissions.
  • Limiting the use of change orders to an initial 5% of the original contract amount for future contract awards. The SCC has also created a Change Order Review unit to independently review change orders and will also develop policies and procedures to ensure consistency.
  • Reviewing with the Attorney General’s Office the possibility of modifying Design Consultant Contracts to require that architect’s ownership and copyright be reverted to the SCC. This review will be concluded and implemented by June 15.
  • Reducing the responsibilities of the PMF’s by relying more on permanent staff and construction managers. The PMF will also be prohibited from bidding as a prime contractor, or acting as a sub-contractor, on any future SCC construction projects.
  • Developing guidelines for the selection of property that will be presented for Board consideration at the June Board meeting.

The implementation plan was released at a special Board meeting held today.

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