George Town’s waste transfer station upgrade is facing a budget blowout of nearly a quarter of a million dollars, needed for unscoped works.
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The revised construction cost equates to a 22 per cent increase on the budgeted amount of almost $1.1 million, now totaling $1,321,794.
It could require other infrastructure plans to be put on hold such as drainage and landscaping works.
The project was approved as part of last year’s capital works program with a completion date scheduled for June 30, 2017.
According to the council agenda for Wednesday’s meeting, setbacks for the project included arson in March and other minor works which had not been fully scoped.
Major works at the site did not begin until seven months after the contract was awarded to Shaw Contracting on June 27, 2016.
“The delay was due to verification, negotiation and detailing of the actual scope of works as the original tender documents, specifications and plans were not initially sufficiently detailed to progress construction activity,” acting infrastructure and engineering manager David Jolly said in the council agenda.
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The revised completion date is November 30.
Three key reasons have been identified to explain the cost overrun of $241,794.
Mr Jolly said cost variations had occurred due to the council tendering for the project based on tender documents and plans with minimal details and specifications.
“As works progressed, design components and construction details became finalised, which led to contractors submitting cost variations in excess of original project cost estimates.”
Secondly, a number of project works required scoping and pricing and there are still several aspects of the project yet to be fully costed.
“In the absence of specific supplier quotations, cost estimates have been made based on internal knowledge of current market rates of goods and services,” Mr Jolly said.
“Additional costs associated with collecting and handling recyclables were not included in the original project estimate, such as mandated storage bunding required for car batteries, a cage for gas bottles, container and bunding required for waste cooking oils.”
Councillors have been asked to support changes to the 2017-18 budget, which was approved last week, to pay for the waste station upgrade.
It has been suggested that capital funding worth $175,642 be transferred, pushing back Howard Street drainage works, culvert network deficiencies, landscaping works at the York Rivulet and part of the private pole replacement program.
A further $66,152 of uncommitted surplus fund was also earmarked for transfer.
An internal project manager has been appointed, security lighting reviewed and sealing needs reassessed as cost cutting measures.
Mr Jolly said a saving of $30,000 would be realised by replacing the original specification of sealing the pavement in the whole Waste Transfer Station area with only sealing the driveway from Mt George Road, the Waste Transfer Station entry area, access around the Tip Shop, and immediately onto and off the weighbridge ramps.
“An internal staff officer has been appointed as project manager for the remainder of the project period, reducing the cost of a consulting project manager [and] the provision of security lighting has been reviewed and the lighting scope revised,” he said.