Tenders high but no additional increase in rates
Tuesday 13 December 2011
Tenders received for the construction of the Coastlands Aquatic Centre and Civic Building are higher than expected, but there will be no need to increase rates as a consequence, says a report due for Council consideration on Thursday.
Mainzeal Construction Ltd submitted the lowest tender for the Aquatic Centre build, but it was $2.29 million above the expected cost.
As a result, an independent high level review was undertaken. The review concluded that the costing advice leading up to the closing of tenders had not been robust enough and that the change from a more conventional structure to the ETFE roof had led to complexity of design and a cost implication that was not fully recognised at the time of the decision.
In her report to Council, Group Manager Community Services Tamsin Evans said the appointment of external project management had also been identified as critical to the successful completion of the project. “Given this, we have appointed Davis Langdon for the build phase of the project.”
The original Aquatic Centre budget was $16.98 million. Council on Thursday will be asked to increase this to $21.11 million. This includes the increased cost of construction, an increase for contingencies, and $1 million to cover the cost of a shortfall in Trust fundraising. The Trust is still committed to raising this amount, however.
Ms Evans says the shortfall could be funded from the proceeds of several land sales which were expected over the next two financial years. This would include land in the Paraparaumu town centre that was to be offered back to former land owners under the Public Works Act. The land sales were expected to realise around $6.5 million, income which had been un-allocated until now.
Work on the Aquatic Centre could begin in February 2012 with the Centre operational by March 2013.
In a separate report, Ms Evans says tenders for the Civic Building upgrade were also higher than anticipated which had led to Council asking a number of hard questions about the advice it had been given.
As a consequence, the Building Intelligence Group (TBIG) had been brought in to provide assistance, and had since been appointed as external project manager for the build phase.
On their recommendation, the two lowest priced contractors were invited to review their tender submissions with a view to identifying further costs saving opportunities. Armstrong Downes submitted the lowest tender price at $5.55 million. This includes savings of $288,000. The $5.55 million figure is $340,000 over the expected cost.
TBIG has recommended a contingency sum of $500,000 be included to cover unforeseen items, documentation omissions or errors, or adjustments required to the design. This has pushed the total construction cost to $6.055 million.
Ms Evans said the upgrade of the Civic Building and construction of the Aquatic Centre were two major projects that would contribute to the longer term goal of a vibrant town centre for Paraparaumu. “The landscape and streetscape which surround the buildings are also important, and it is important that these elements are developed in conjunction with the buildings.”
Given this, plans have been included to turn the grassed area at the end of Ngahina Street into 88 new car parks in response to long standing concerns by many, and improve the roading layout. An upgrade at the intersection of Rimu Road and Iver Trask Place is also planned and discussions are underway with Te Whakaminenga o Kapiti on three carved pou for the atrium. The cost of these associated projects has been set at just over $1 million and is being funded from the town centre, roading and public art budgets.
Ms Evans said the original budget for the building upgrade excluding the cost of the associated roading and parking projects, was $7.25 million. This included $662,000 for temporary working arrangements during construction. The new budget is now $8.262 million. This difference will be funded from the existing district-wide town centres budgets. There will be no call to further increase rates to cover the amount.
If Council approves the project on Thursday, staff could re-locate to the former Whitiriea campus at Lindale in January and construction work could begin in February, she said.