Project Costs for Art Gallery and Heritage Centre

25/09/2014 12:00 a.m.

The Ashburton District Council agenda item relating to the Ashburton Art Gallery and Heritage Centre building has costs relating to the final project.

The information below should help with an overview about the building expenditure and the additional spend.

There are three sets of figures in the September 2014 report: $6.3m; $7.8m and $9.7m. These figures relate to the tendered construction cost, the final construction cost, and the final total project cost respectively.

The report talks about $6.3m.Please be aware this doesn’t include 5% contingency costs for the construction of the building. Council budgeted $6.6m for the construction of the building. The $6.6m sum includes 5% contingency costs of $300,000.

However, the final construction cost has come to $7.8m (including the $300,000 contingency). There were a number of contributing factors such as delays finalising the construction management plan, and changes to structural details to meet new earthquake and building code requirements which meant additional spending from the $6.6m was required.

There was also an 11 month period of inactivity from when the contract was awarded to when work started. This meant prices subject to escalation clauses within the contract were increasing, such as price of materials and labour costs as part of the general Canterbury building cost increases.

These factors took the final price of the building’s construction to $7.8m. This is an additional spend of $1.2m including the 5% contingency cost of $300,000 ($6.6m to $7.8m).

Other expenses such as legal fees, consultants, architect fees and consent issues amounted to an extra $1.9m on top of the final construction price of $7.8m taking the total cost of the project to $9.7m.

The building is now valued at $10.6m, $900,000 over the $9.7m cost to build.

To build the Art Gallery and Heritage Centre now, based on current construction prices, would cost about $12.3m.

Page reviewed: 25 Sep 2014 1:48pm