Goulburn's arts venue tenders higher than expected

The prices from the only two tenderers on the previously estimated $12.1 million project have prompted a re-think.

Council general manager Warwick Bennett could not say how much higher the tenders were due to confidentiality. But he told The Post it was more than 10 per cent, the increase he would reasonably expect one year after a quantity surveyor’s estimate was completed.

Councillors at Tuesday’s meeting discussed the prices from Sydney-based firms Kane Constructions Pty Ltd and TCQ Construction in a closed session due to commercial in confidence considerations.

But when they resumed in open session, they decided to decline both tenders and to work with architect, Brewster Hjorth to reduce the scope and cost.

Following this, discussions with both builders would recommence on the amended scale of the 400-seat facility, planned for the historic Old Town Hall.

The council decided not to call fresh tenders due to the “time and expense” involved and the limited interest from the market in the original tender phase.

But Crs Margaret O’Neill and Sam Rowland wanted more.

The former told the meeting she’d always had concerns about the cost.

“...I feel that before we turn the first sod we need to know how much money has been spent, what we’ve budgeted and what we can build there,” she said.

Cr O’Neill acknowledged she’d always opposed the PAC and said if it were somewhere else, she’d be “100 per cent behind it.” But the council also had to get value for money.

Supported by Cr Sam Rowland, she called for a full statement of expenditure on internal and external work to date. Their colleagues agreed the report should come to the November 7 meeting.

Cr Rowland too said the cost had been a continuing concern.

“Clearly those concerns are well founded. I think this is an appropriate and responsible way forward,” he said.

At Deputy Mayor Peter Walker’s instigation, councillors also requested that following negotiations with the architect and tenderers, a list of loose furniture and fittings not included in the tender prices be provided.

In his report, operations director Matt O’Rourke said tenders were called from August 7 to October 9. Six companies attended a pre-tender meeting but only two followed through.

He attributed the difference in prices from the quantity surveyor’s estimate to current strong demand in the construction sector, the site’s complexity, “high end finishes” in the building, the low number of tenderers and possible scope creep in the final design plans.

Mr Bennett told The Post the scope creep was in every aspect of the build.

“We’re very concerned the prices are significantly higher than what the quantity surveyor and architect estimated and that’s a discussion we’ll be having with them,” he said.

“...I think it’s disappointing they haven’t been able to get closer to the mark. However we’ll go back to the tenderers and talk to them about how well they’ve understood the scope and building methodology so we can see if there’s any opportunity for savings.”

While the council had secured $8m in grants for the project, $4m more than expected, and could accommodate more expense, Mr Bennett said he was “absolutely adamant” that any additional expenditure should be well managed.

“(I want) Goulburn to get out of this what we originally planned and that it be a realistic price and affordable,” he said. 

The GM believed the net had been cast wide enough for tenderers but maintained the sheer volume of construction work available made it difficult for councils to secure competitive prices.

Mayor Bob Kirk echoed this view, saying that while it was wonderful the State Government was offering substantial grant funding, it had also warned of higher prices and less available skills amid the construction boom.

“We have to find a way to manage this,” he said.

“There’s a lot to discuss but it will be an absolute shame if it doesn’t go ahead.”

A report on the negotiations will also be provided at the council’s November 7 meeting.

Meantime, Mr O’Rourke said sewer excavations behind the planned PAC would resume on October 29.

The work came to an abrupt halt in June when archaeologist Wendy Thorpe found remnants of the old Goulburn Jail in the ground. But subsequent investigations found these were limited in extent. The work was also mindful that bushranger Thomas Whitton, who was hanged at the jail in 1840, could be buried in the vicinity.

Mr O’Rourke said Ms Thorpe had undertaken a chronology of events and now believed Whitton was buried underneath the 1887 Old Town Hall.  

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