 |
| One financial headache after another! Upgrade of depot has proved eye-wateringly expensive for council |
AN update is due next week on the problem-ridden redevelopment of North East Lincolnshire Council's works depot on Doughty Road in Grimsby.
At a meeting on Thursday, councillors will seek assurances that there have been no more cost overruns on the project that has been bedevilled by four years' worth of financial woe.
Even in February, 2020, the £6.8-million estimate for re-modelling and refurbishing the site, formerly a railways sidings, seemed high.
But it now seems the council will be fortunate to see much, if any, change from £9-million.
A report to councillors states: "Global issues have impacted on the UK economy, creating both financial and delivery pressures in the construction sector.
"Since the start of the project, inflationary factors brought about by the change in the economic climate have also impacted tender returns for each element of the work.
"The extent of these issues could not have been anticipated prior to project start.
"There have also been unanticipated expenses relating to the age and complexity of the site."
The biggest shock came when excavations for proposed new garage buildings adjacent to Peaks Parkway revealed a large railway sleeper tanalising tank that had been capped with concrete slab.
The tank was made with cast iron and infilled with soil and rubble which had become contaminated by the remaining tanalising fluids.
The required cleansing, demolition and safe removal of the tank and contaminated waste, plus the delays to the garage construction, resulted in an unanticipated extra cost of £216,250.
Since then, more contaminated ground has been discovered during construction of the internal road works.
Similarly, the construction of a new grounds maintenance building was subject to increased costs because piling was needed for the footings.
This added a further £662,000 to the costs.
Engaging a specialist firm to install underground ducting for utilities is also understood to be costing £125,000 more than originally budgeted.
And, as if that little lot were not enough, the leaky roof on the main office block had had to be replaced with something sturdier to allow solar panels to be installed at a later date. This has added a further £128,00 to the cost.
Despite the financial woes, the council is looking on the bright side.
The report concludes: "The project has continued and is currently on target and within the revised budget."
Once completed, it is intended that the depot will will bring 300 council staff and partners together on a single six-acre site and house most of the council’s fleet including HGVs for waste collections, tractors for grounds maintenance work and a number of electric vehicles.
It will result in the relocation of 70 staff who currently work at the Gilbey Road depot site which will be sold to help to defray the development costs.
Speaking in February this year, North East Lincolnshire Council portfolio holder Cllr Stewart Swinburn said: "This project ensures that an important site in the town centre will not be left to deteriorate.
"The facilities at both Doughty Road and Gilbey Road are outdated and need complete refurbishment.
"We have made the right decision to consolidate all these services on the Doughty Road site in one of the most ambitious town centre projects we have undertaken as a council."
 |
| The Doughty Road depot as it was - with Grimsby Town Hall on the right |
No comments:
Post a Comment