Three major Dubbo Regional Council projects are at risk of being scrapped due to a blow out in construction costs.
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In a report that will be presented to Dubbo Regional Council on Thursday evening, chief executive officer Murray Wood has outlined a project shortfall of more than $8.7 million to complete the Wiradjuri Tourism Centre, Old Dubbo Goal Heritage Plaza and Macquarie River foreshore precinct.
It's comprised of just under $500,000 to complete the heritage plaza, almost $3 million for the foreshore events precinct and a whopping $5.3 million for the Wiradjuri Tourism Centre.
Council has attributed unexpected hurdles, the rising price of construction materials and project delays to the increased costs of the projects.
In the report, Mr Wood has recommended council scrap the Wiradjuri Tourism Centre - which was planned for construction at Wiradjuri Park near the Adventure Playground - so the $4 million in funding that remains could be transferred to the other two projects.
When first announced, council said the Wiradjuri Tourism Centre would include an art gallery and museum space, yarning circles, dedicated cultural performance areas and educational facilities. It would also have a cafe with Indigenous-inspired flavours.
"Although there have been cost-saving measures implemented into the design, and construction and material changes that can be approached as part of the construction scope, the potential construction savings of undertaking these changes will not impact the budget to the extent needed to pursue construction with the current budget," Mr Wood said.
"Simply the $5.3m funding shortfall cannot be made up with scope changes, without jeopardising the overall quality and purpose of the experience."
By shifting the NSW government funding to the other two projects, Mr Wood said it would allow them both to be completed with an additional $600,000 as contingency.
If the councillors follow Mr Wood's recommendation, council will make a formal submission to Infrastructure NSW to reallocate the funds.
"There still remains a risk that Infrastructure NSW will demand the funds back from the original funding deed as the original delivery date was April 2022," Mr Wood said.
"It is important council presents a clear path forward to Infrastructure NSW immediately to avoid the risk of defaulting on the original funding deed."
Mr Wood as attributed "unexpected hurdles" as one of the main reasons the heritage plaza construction costs have increased.
"The design and cost implications of heritage items being located as part of the building demolition, resulting in a large heritage assessment through an archaeological site survey, have impacted the ability to deliver this project within project timeline and project budget," he said in the report.
"This impact now leaves the project with a reduced scope in the landscaping that is able to be done within original budget as well as higher financial impacts for the heritage works undertaken adding further pressure to the project budget."
Delays with the foreshore project have also lead to "const escalations" with building materials, he said.
At the meeting on Thursday night council will also consider alternatives to fund the Wiradjuri Tourism Centre.
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