Ralph blasted me in this weekend’s Budgeteer by saying that JCI will not earn 18% on the Red Plan. Take a look at this graph which JCI gave the District in December of 2006 to explain how it would charge for project management. It shows a theoretical one million dollar project. The sample shows it earning $188,000 of the total costs. That’s 18.8 percent!
The letter is to the District’s Director of Facilities, Kerry Leider and begins:
Dear Mr. Leider:
In response to your request, I am writing to provide you with an example of how Johnson Controls’ professional service fees would be applied to a project. Two examples are shown. the only difference is the project delivery method: general contracting versus construction management. The example is a renovation project, where the mechanical contracting work comprises at least 60% of the total project construction costs.
The letter is one of the affidavits in our taxpayer case against JCI and the School District. You can see the whole letter here.