Surprise packages tip arts centre costs
Unknown and unexpected works including fire protection works, asbestos and design conflicts are among the works that have seen the West Gippsland Arts Centre redevelopment overrun its budget, according to mayor Joe Gauci.
A few surprise packages because of works associated with an old building have blown the $13.4 million project by almost $750,000.
Notified of the works only weeks ago, councillors have expressed disappointment at the overrun, and the need to redirect savings from last year’s budget into the arts centre project.
Cr Gauci blamed an old building and unforeseen works for the extra costs, admitting the contract’s contingency for extra costs was possibly not high enough.
Cr Gauci said it was normal procedure for “extras” to be revealed towards the end of a building contract but denied the contract of works was not tight enough to prevent the cost blowout.
Cr Gauci said $773,137 overrun included an increase to the contingency allowance from eight per cent of the total construction cost to 13 per cent – or an additional $438,488.
He said council also had allowed an additional $334,649 for architect and consultant contracts. While this figure is not confirmed, Cr Gauci explained the architect and consultant worked throughout the building project to address design issues that may arise. He said the $334,649 was an estimated amount.
Cr Gauci said until contractors got into the bones of the building a lot of the problems associated with renovating an old building were not known, such as beams not being where they expected and the full extent of asbestos.
The $438,488 increase in the contingency allowance includes:
29 per cent latent conditions – works discovered in the course of the project which could not have been accounted for before the tender such as rock being uncovered underground or steel shown on the original drawings not being present.
19 per cent design development - design elements that have been changed and added a required benefit to the operation of the building.
20 per cent compliance works required to bring preexisting aspects of the building up to code to achieve the occupancy permit. For example, relevelling existing concrete stairs that are within a fire egress path.
10.5 per cent design oversight - remedying conflicts within the design documentation to achieve the original intent of the design such as ensuring the required number of lights for a given room as part of the architectural documentation are also included in the electrical drawings.
2.5 per cent client changes changes as requested by the client such as change to an office layout.
19 per cent - further contingency allowance to the end of the project to account for any unforeseen issues that may arise between now and the end of the project.
Focussing on the positives of what the redevelopment project had delivered, Cr Gauci said 56 jobs were created with employees coming from most towns between Nar Nar Goon and Traralgon, and around Gippsland.
Cr Gauci said almost $3 million worth of construction supplies were purchased locally including $1.2 million in metalworks and steel; $700,000 in concrete; $500,000 in carpentry goods; and, $300,000 in equipment access and plant hire.
Baw Baw Shire Ratepayers and Citizens Association president Rob Sinnett said members would discuss the arts centre redevelopment costs at a meeting tonight.
He said he was not in a position to respond to the costs blowout until association members had the opportunity to discuss it at their meeting.
Dr Sinnett said the shire’s arts and culture manager Rob Robson was guest speaker at the group’s May meeting when he was asked directly about the finances of the project.
“He assured us it was on budget,” Dr Sinnett said.