Funding approved as water costs rise
The cost of water infrastructure projects in North Canterbury’s Hurunui district is escalating amid supply chain complications, forcing the council to open up the cheque book.
More than $200,000 of unbudgeted costs for additional works in Amberley were approved at last week’s Hurunui District Council meeting.
But Hurunui District Mayor Marie Black suggested it may be the new normal amid supply chain issues and increasing labour costs which were being felt all over the country.
An additional $135,000 of unbudgeted funding was approved for the upgrade of a polyethylene water main pipe at Willowside Place at the meeting.
The agenda item was followed by the approval of a further $92,000 for the installation of a sewer line, linking Courage Road to the Oakfields subdivision.
Hurunui District Council chief operations officer Dan Harris said the labour situation, both in terms of cost and availability, had been deteriorating over the past 18 months. The additional costs would be debt-funded.
Deputy mayor Vince Daly questioned whether further funding for water main pipe was sufficient, considering material costs were ‘‘ballooning out of control’’.
Harris said contractors had agreed to honour their rates.
Contingencies had also been built into the project estimate.
The pipe upgrade in Willowside Place had been identified as a restraint in the water network amid significant growth happening in the North Canterbury town.
‘‘As the works progressed there were some unforeseen costs relating to an increase in supplier and labour prices and other unexpected works relating to Dock Creek, using up the budget that was going to cover the costs of Willowside Place,’’ the report said.
Meanwhile, a sewer line was to be installed to link the eastern end of Courage Road to the current network. The additional work to complete the Courage Road project had increased the estimate from $90,887 budgeted in the district long term plan to $161,186.
‘‘As the trenching headed north, ground water has been encountered, complicating the laying of the new pipe, and additional costs will be incurred to complete it.’’
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