City Auditor releases findings of Grightmire Arena Lessons Learned Audit

HAMILTON, ON – The Office of Hamilton’s City Auditor presented its findings as part of a Council-directed audit to understand why and how the J.L. Grightmire Arena addition and renovation project experienced significant issues.

The Council-approved report (AUD22004) included the lessons learned audit report, recommendations and management responses. Details of the report will be used by City staff to inform the management of future City capital projects.

As part of the scope of the audit, the Office of the City Auditor made 15 recommendations related to capital project management, risk management strategy, vendor management and procurement policies, legal support and external consultants. 

Management has agreed with all 15 of the recommendations and provided responses containing their plans to address the recommendations.

Key findings from the Grightmire Arena audit determined:

• The level of oversight and timeline of actions in overseeing the work of the contractor were insufficient and not commensurate with the level of risk for the project
• There was a lack of a risk-based project management strategy and processes in place across the board to manage a high-risk capital project like Grightmire Arena
• The project was not managed strictly in accordance with the terms and conditions of the contract
• A vendor performance management process is needed to mitigate the circumstances of poor contractor performance
• Public criticism and negative exposure of the project was caused, in part, by lack of timely and upfront communication with City Council and the public

Key recommendations from the Grightmire Arena audit include:

• Staff should manage capital projects with a risk management strategy and tactful, forthright communication
• Staff should make every effort to manage project requirements in accordance with the terms and conditions of the contract
• Staff should ensure proper vendor management and procurement policies are followed
• Staff should seek legal support and decisions that could be optimized in the best interest of the City
• Staff should work more closely to ensure effective deployment and oversight of external consultants
• Staff should review its process for approving settlements that exceed a predetermined threshold to ensure appropriate due diligence is being exercised