By Jill Colvin
DNAinfo Reporter/Producer
MANHATTAN — Mayor Michael Bloomberg downplayed the new World Trade Center PATH Hub's ballooning budget Friday, describing the $180 million cost overrun as "not bad forecasting."
The Port Authority board announced Thursday that the cost of Santiago Calatrava's dramatic winged PATH hub at the World Trade Center had swelled to $3.44 billion — $180 million more than expected.
Port Authority Board members expressed concerns about the hike before voting it its favor. But Bloomberg downplayed the new price as off by just 2 percent.
"In all fairness, that's not bad forecasting," Bloomberg told WOR's John Gambling during his weekly radio sit-down. "These things aren’t specific," he said.
Bloomberg said that cost overruns could be prevented "just by vastly overestimating the cost," but said that underestimating is better than over-reaching
"You're better off underestimating, forcing people to watch the pennies. The trouble is, then, when you have to raise it, because of costs or things beyond your control," he said, adding that, often, over the course of building big projects, new ideas emerge and are added along the way, adding to the cost.
The Port Authority, however, blamed the increase partially on security concerns that forced them to "harden" the PATH and subway station. As a result, a steel contract that was expected to cost less than $100 million came in at $205 million, Steve Plate, the director of World Trade Center construction for the agency, said.
He also blamed high international shipping costs and overruns on smaller plumbing, electrical and mechanical contracts.
The Port Authority will use money from a contingency fund to cover the extra costs.
Bloomberg's preliminary budget for the coming year, released last week, proposes a 10 percent cut in capital spending to help close a multi-billion-dollar deficit.
