INTRODUCTION Water & Sewerage is faced with many problems, issues, challenges and cultural complexities that are embedded in deep denial, lack of responsibilty, accountability and leadership to help solve its many problems. The problem identified in this analysis is a classic case of “Demystification’ that has led to a project that is over budget and the corporation and/or government of the Bahamas has to pay for the Fox Hill Treatment Plant The corporation made a decision not to use a quality management system which would have the capability to track, monitor and manage the project through standards, process and procedure to protect the interest of Water & Sewerage financial resources. The analysis of this report based on the records that are attached clearly indicated that top management who were responsible for the Fox Hill Treatment Plant failed to show through records its commitment to a set of interrelated or interacting elements of processes, procedure or policies that they were able to control the contractor's initial cost, based on a contract that stipulated an agreed amount for the Fox Hill Treatment Plant. This analysis was done in reference to the audit that was carried out based on questions and documentation, therefore it is not a personal opinion, so please ‘open yourself to the findings to help move the corporation forward by determining ways to improve the process so as to not relive the problem again to the further detriment of the organization. To assist with moving forward, recommendations are included, bearing in mind they are only recommendations, not etched in stone, but may be considered to start a dialogue where there is shared purpose and vision. The intent of this report is not to point fingers but to outline the inconsistencies, the mistakes, the lack of responsibility, accountability and transparency that brought the organization to the $700,000.00 for the Fox Hill Treatment Plant. The analysis indicates that there is indeed a big problem with organizational interrelated activities and it should be addressed to save the organization and the government of the Bahamas’ money. This problem is unacceptable because its root is in management principles, which seemed not to be used based on the documentation as it relates to the problem. The Water & Sewerage Corporation was billed $763,948.14 for the Fox Hill Treatment Plant and based on the documentation it is evident that SABL Bahamas requested more money that far exceeds the current budgeted amount stated in the initial contract (see page 24). The question that comes to mind is where is the documentation to substantiate the financial claim as outlined by SABL Bahamas for the project as is relates to the contract administration in terms of. © Partnering conditions