Goulburn Re-use centre at tip blows out by more than $2m

The RUG, or Re-use Goulburn initiative at the city's waste management centre, is also take 19 months longer than expected.

The centre was originally slated to cost $7.5 million. By 2021 this had grown to $8.44 million due to cost escalation. But councillors were told at their recent meeting that a further $2,080,595 was needed to complete the work.

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Utilities director, Marina Hollands, said delays in construction had incurred additional project management costs. This was caused in part by head contractor, Lloyd Group's voluntary administration in March, but also the fact that construction was taking place on a waste pile.

"The biggest cost is inflation, which has increased prices (for materials). All of that has added up to a bigger project," Mrs Hollands said.

She pointed out that it was just over two years since the original costings were provided. What was supposed to be a nine-month project had now drawn out to two years and four months.

The facility includes an undercover, one-stop-shop for waste disposal with a community recycling centre for hazardous wastes and drop off areas for recyclables such as mattresses, polystyrene and cardboard.

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There will also be a tip shop, where items can be dropped off for repair and re-use, vehicle wash bay, an education centre and second weighbridge.

The centre was behind schedule when Lloyd Group collapsed in March. This was also due to weather delays.

Council CEO Aaron Johansson previously told The Post that the organisation didn't lose money when the company entered voluntary administration. This was because money was paid as the builders reached milestones.

However, in April, the council appointed Capital 2 Coast to take over from Lloyd Group, at a cost of $645,975 excluding GST. The company was already working on the project as a sub-contractor. The council then took over project management.

Mrs Hollands said the current budget didn't cover additional expenses but income from waste disposal fees for the year exceeded estimates.

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At their recent meeting, councillors allocated $250,000 from waste reserves to help make up the financial shortfall. They also deferred a $1.83 million drilling mud project near the waste management centre that was due to start this year. That money will be reallocated to the RUG centre.

Cr Bob Kirk agreed the project needed to be completed for the community but argued a breakdown of additional costs should have been supplied in a report.

"The executive (management) has had a chance to review the costs and I appreciate (the reasons for the extra costs). A 20 per cent increase on the original budget is worrying," he said.

"...We want to see it done but we should be able to understand what makes up those costs, given we have to make the decision and justify the spend. I don't think that's too much to ask."

Cr Kirk said he also wanted to be satisfied the new allocation was sufficient.

Mrs Hollands replied that much of the figure was project management but a breakdown could be provided.

Meantime, she told The Post that work was progressing well on the RUG, with a slab completed and steelwork going up. Workers were about to install a weighbridge.

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This would be followed by roofing, cladding, electrical work, tip wells, road construction, finale earthworks and completion of the re-use hub.

Also at their meeting, councillors awarded a $677,231 tender to Goulburn firm, ARW Multigroup for the RUG's roofing and cladding. Canberra company, Rodgers Electrical, was awarded a $676,907 tender for the supply of electrical, mechanical, communications and CCTV work on the centre. Mr Johansson was authorised to approve variations of up to 10 per cent on both contracts, if needed.

The RUG is expected to be completed by the end of December, 2023.

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