No stopping now
New McNamara Reserve facility to start despite coming in over budget
New change facilities at the netball and tennis courts at Myrtleford’s McNamara Reserve will go ahead as planned despite a forecasted overrun of $236,135 against the approved project budget of $500,000.
A number of significant items were omitted from the initial cost estimate developed during the concept design phase used to establish the overall project budget including costs associated with underground services.
Market rates achieved through the tender process also turned out to be significantly higher in a number of areas than what was assumed at the concept design stage.
Nonetheless, Barton Street Developments were awarded the tender for after confirming their ability to complete the project by next March.
The Tawonga-based company was awarded the contract for the lump sum of $548,628 plus GST.
The total project budget for the upgrades was set out as $500,000, comprising of $100,000 of grant funding from Sport and Recreation Victoria, and $400,000 to be funded by council.
The completion cost of the project is now expected to be $736,135.
Council documents said a low level of contingency was also applied to the concept design cost estimate, which wasn’t reflective of the level of uncertainty that remained in the project during the initial stages which resulted in the cost overrun.
The forecast cost overrun will be accommodated in council’s long-term financial plan, however it will result in a reduction in the working capital ratio.
Alpine Shire Council director assets Will Jeremey said re-tendering of the construction scope could have perhaps seen a more competitive outcome for council, however doing so would result in a 12-month delay to the project.
“The key thing is council was committed to deliver this project over the next six months and the final decision was made by councillors who didn’t want to delay the pro- ject by a year,” he said.
“McNamara Reserve user groups notified council of their preferred construction window of October 2018 to March 2019.
“Construction during this period will present the least disruption to scheduled netball and tennis matches, including the Easter Tennis Tournament.
“Barton Street Developments has confirmed their ability to meet this construction timeframe.”
The new facilities will provide two unisex change rooms, a unisex umpire change room, two unisex accessible amenities, a first aid room/office and kiosk.
Meanwhile, Mr Jeremy said the tender for the Myrtleford Indoor Sports Stadium Expansion will be awarded at October’s ordinary council meeting.