The Mount Gambier Community and Recreation Hub will cost $18.2 million more to build than initially estimated.
- Council will fund the additional cost through borrowings at a low interest rate over a period of 20 years
- The community and recreational hub is expected to be complete by May 2022
- Adelaide-based BADGE Construction has been awarded the head contractor tender
It is the largest infrastructure project undertaken by the City of Mount Gambier.
It comprises of a two-storey building housing six indoor sports courts, an indoor pool, as well as fitness and meeting room facilities.
The project was costed at $39.1 million based on an intermediate design in 2018, and attracted $15 million Federal Government and $10 million State Government funding.
City of Mount Gambier chief executive Andrew Meddle said the competitive tender process determined the true build cost of $57.3 million, based on a detailed design.
The additional cost will be funded by council through borrowings at a low interest rate over a period of 20 years.
Mr Meddle said the City of Mount Gambier Council could comfortably afford to do the work.
“[It is] not planning to put rates up above what it said [in the Long Term Financial Plan], which was at 4.5 per cent escalated to afford the operation of this facility going forward,” he said.
The project was expected to be completed by summer 2021, but is now expected in autumn 2022.
Mr Meddle says the new project timeline is dependent on the weather and the effect of coronavirus restrictions.
Construction to start within weeks
Adelaide-based BADGE Construction has been awarded the head contractor tender after a months-long tender process.
City of Mount Gambier Mayor Lynette Martin said she was looking forward to construction soon.
“[The project] is going to be a game changer for our city and after 30 years of our community asking for a facility of this type, now is the right time to invest in this project and finally get it started,” she said.
Mr Meddle said the procurement process ensured that council not only secured the best value for money, but a commitment from the head contractor that 40 per cent of the total contract sum was to be spent locally.
“This is money that is going to be recycled into the hands of our tradies and into the hands of our suppliers, who undoubtedly will pass that on.”