Greg Christie, Contractor General - file
Contractor General Greg Christie, in his investigations of the Sandals Whitehouse project, has indicated that the US$40 million cost overruns on the project were due largely to changes in the scope of works. The following excerpts show the extent to which the parties involved in the project impacted on changes to the design and specifications.
"In the Newtown Board minutes of September 12, 2002, the following was stated:
Hotel Name
The change of the name of the hotel from Beaches to Sandals was agreed, subject to there being no additional cost to the project as a result of this change. It was explained that the difference between Sandals and Beaches had to do with the fact that no children under 16 were allowed at Sandals and no connecting doors were required in a Sandals property, which could result in some savings on construction. It was also felt that Sandals was a stronger product to sell and market than Beaches product."
Following these agreements, the following events occurred:
Gorstew Ltd. was paid US$421,068, for technical services rendered on the development
Gorstew Ltd. is presumably substantially owned by the Hon. Gordon 'Butch' Stewart. Advisement was given by Appliance Traders Limited (ATL) and Sandals Resort International (SRI), both of which are presumably substantially owned by the Hon. Gordon 'Butch' Stewart.
"A letter from Gorstew Ltd., dated June 18, 2002, states that the change from a Beaches resort facility to a Sandals resort facility have had limited impact on the budget. However, our perusal of the project files uncovered no proof to support this claim."
"The board of Newtown, on the advisement from Gorstew Ltd., changed the brand of the facility from 'Beaches' to 'Sandals'.
With the above points made, it is fair to say that Gorstew Ltd. and its associates would have had significant influence upon the design of the hotel. The pictures on file, which were taken at Sandals Whitehouse, clearly exhibit the level of craftsmanship of the facility. They are indicative, inter alia, of the additional costs which would have been incurred and which would have significantly impacted the initial budget of this project."
"With the new Sandals concept on the table, the facilities would be further upgraded by the developers to include the following:
A dive pool and special water sports facilities with their own jetty;
Three zero-entry pools with the central pool being one of the largest in the island (each pool would carry its own support jacuzzi and swim-up bar);
An over-sized jacuzzi and spa jacuzzi;
Separate facilities for a gym and aerobics room;
Two squash courts;
A fully enclosed entertainment complex with its own bar, a purpose built stage with state-of-the art sound and light installations and an extensive backstage change room facility, which was to be promoted as a European style theatre;
Ballroom, wedding room and conference room with state-of-the-art audiovisual facilities.
To ensure the integrity of the Sandals trademark, all of the above facilities and interior design work were undertaken by Newtown and members of the Gorstew Ltd./Sandals Group."
