Market escalation and contractor availability blamed for Albert Hall delay

Since the 2019 announcement of a multimillion upgrade of the iconic Albert Hall, the renewal project has faced setbacks due issues caused by the COVID -19 pandemic with contractor availability and cost increases.

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The City of Launceston council will receive an update on the Albert Hall Renewal Project at the next council meeting which addresses the challenges the project has faced.

All projects that have spanned the pandemic have experienced financial challenges as many factors combined to drive up the cost of development by some 30 to40 per cent while driving down the availability of contractors, the council have reported.

The council along with councillors have had to review and refine the project to ensure that the costs can be managed without compromising.

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In 2019, the federal government announced $10 million for the project as a part of the Launceston City Deal along with $1 million from the Local Roads and Community Infrastructure Program.

The plans for the project were revealed in March 2022.

The project includes two components; hall upgrades and eastern wing upgrades.

The hall improvements faced issues such as a shortage of qualified contractors in Tasmania, an over supply of work and the work packages were small and not as attractive.

Tender responses were an issue for both components with no response and their intended construction commencement dates passed.

The aim for the project completion is July 2024, but it will likely be delayed by a few months.

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In 2022, the project was set for completion by the end of 2023 and in 2020, set to be completed mid-2022.

The development application for the project was passed in May 2022.

In terms of costs, the budget sits at the $11 million in funding but the market price escalation over the past three years have caused significant impacts on the projects budget. Further significant increases are expected for the next 12 months through 2023.

At this stage, the council has not committed any funding to the project.

The council is currently finalising its 2023-24 budget and there is financial capacity to include a funding allocation to meet the anticipated budget shortfall for the project.

The range to be considered is between $4.3 million to $6.4 million with a final figure to be determined by the contractor engagement procurement process.

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