Arts cen­tre fi­nal costs still un­known

Warragul & Drouin Gazette - - NEWS -

Fi­nal costs or bud­get over­runs for the West Gipp­s­land Arts Cen­tre rede­vel­op­ment may not be known for two years.

Coun­cil an­nounced in June there had been an un­ex­pected bud­get blowout of $759,000 with the project.

At the time, coun­cil said it was ne­go­ti­at­ing with the con­trac­tor Build­ing En­gi­neer­ing about the in­creased costs.

Coun­cil blamed an old build­ing and un­fore­seen works for the ex­tra costs, ad­mit­ting the con­tract’s con­tin­gency for ex­tra costs was pos­si­bly not high enough.

The rede­vel­op­ment project ini­tially had an ex­pected re-open date of July. But ad­di­tional works and de­lays have con­tin­ued to push back the open­ing.

The build­ing will be now handed over to coun­cil on Oc­to­ber 31.

But deputy mayor Danny Goss said the con­tin­ued de­lays did not nec­es­sar­ily equate to ad­di­tional costs.

Cr Goss said the cost over­run in­cluded a $250,000 con­tin­gency which had not been ex­hausted.

“The fi­nal cost of the project will be con­firmed at the con­clu­sion of the de­fects li­a­bil­ity pe­riod - 24 months af­ter the fi­nal han­dover date,” Cr Goss said.

Four­teen shows have been can­celled or resched­uled be­cause of the on­go­ing de­lays.

Act­ing chief ex­ec­u­tive of­fi­cer Mark Dupe said it was dif­fi­cult to quan­tify loss of rev­enue from these shows be­cause es­sen­tially au­di­ences had still pur­chased tick­ets for the resched­uled or re­lo­cated show.

“We’ve in­curred op­er­a­tional costs of do­ing busi­ness as­so­ci­ated with hire of ex­tra equip­ment and hire of other venues.

“Costs in­curred with de­lays are be­ing man­aged within ex­ist­ing op­er­at­ing bud­gets. We ex­pect the ma­jor­ity of these costs to be re­couped through in­creased rev­enue from de­mand for the arts cen­tre af­ter re-open­ing,” he said.

Mr Dupe said the fi­nal costs of de­lays and reschedul­ing will not be com­pleted for a num­ber of months.

Newspapers in English

Newspapers from Australia

© PressReader. All rights reserved.