Cost blow outs for Rookwood Weir, council projects revealed
As the cost of living continues to hit the hip pocket, the cost of some of the region’s biggest infrastructure projects have also seen their price tags rise.
Rockhampton
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As the cost of living rises, so too has the budgeted cost of a number of projects across the region.
One of the most notable, the Rockhampton Ring Road, was stalled when estimates rose to a whopping $1.7 billion from its allocated $1 billion.
Just last week, Queensland Budget estimates revealed the Rookwood Weir project has skyrocketed by $200 million over budget.
Water Minister Glenn Butcher said the project, which is expected to be completed this year, had been hit by a 55 per cent cost over-run.
The project is forecast to cost $568.2 million compared to its original budget of $367.2 million, with the extra cost to be carried by government-owned Sunwater.
He said during the project’s construction had been hampered by six flood events, Covid-19 lockdowns, supply chain issues and escalating costs.
In the budget, handed down on June 13, an increase of funding for the project was announced.
Despite the cost increase, Mr Butcher said the project was on track to finish construction this year.
“Rookwood Weir construction is powering along with the weir now 90 per cent complete,” he said.
“Construction is scheduled to be completed this year. Construction costs have increased across the world.
“The responsible and measured decision to increase funding is about ensuring the project is completed for the good of the Central Queensland community.”
The second portion of water sales for the weir were completed, with a total of 21 landholders successful in obtaining allocations.
A spokesman for Sunwater said first water for customers would be available in 2024 after the commissioning of the weir’s infrastructure.
“Building water infrastructure of this size and complexity in a dynamic and reliable river system like the Fitzroy is a challenging undertaking,” he said.
“Sunwater and the Alliance’s focus throughout the project has been to work safely and efficiently to ensure we are building the weir to the highest possible standard.”
Capricornia MP Michelle Landry said the water security the project would bring would “surpass” the additional cost to complete construction.
“While you can’t predict flooding events or a global pandemic, one thing you can predict is overtime costs do increase,” she said.
“At the end of the day, the planning and construction phase of any project – be it road or a weir – is the responsibility of the state government and the onus of cost blow-outs lays in their court.
“It is rather refreshing to see, for once, they haven’t shut up shop on a project that’s blown out cost in regional Queensland and have kept on track to complete it, like they do for south-east Queensland projects.”
Rockhampton Regional Council isn’t immune to the cost escalations, with many of its projects almost doubling.
The intersection upgrades at Farm and Alexandra streets have increased by 46 per cent, from $3.9 million to $5.7 million, and the Limestone Creek Diversion project went up by 34 per cent, from $2.9 million to $3.9 million.
The roundabout at East and Stanley streets rose from $1.1 million to $1.4 million, by 27 per cent, and the River Rose Drive project had an increase of 11 per cent, from $2.25 million to $2.5 million.
Mayor Tony Williams said cost escalations were being seen across all levels of government.
“This is being acutely felt in regional areas where material costs, skill shortages and the lack of competition add to the complexity of delivering capital projects,” Cr Williams said.
“Our focus is around managing our capital project pipeline and how we continue to deliver the projects we know the community want and need while managing those pressures and the environment we are in.
“That could mean instances where we look at changing the scope or sequencing of projects but we are very conscious of the need to continue to invest in those projects that make our towns and regions work.”
GOVERNMENT PROJECTS
Rookwood Weir
Original budget: $370 million
Revised budget: $570 million
Increase: 54 per cent
About the project: Rookwood Weir has been described as a “landmark” project that will capture water in the lower Fitzroy River for use across the region. Construction on the weir began in April 2021 with work expected to wrap up in the coming months. The project’s original budget was $367.2 million, with the project now expected to cost $568.2 million. Since construction began, the project has been hampered by six flood events, Covid-19 lockdowns, supply chain issues and escalating costs.
Rockhampton Ring Road
Original budget: $1 billion
Revised budget: $1.7 billion
Increase: 70 per cent
About the project: The Rockhampton Ring Road has been touted as one of the biggest infrastructure projects in the region’s history. The project will see 18km of new road and a new bridge across the Fitzroy River. On average, 2640 heavy vehicles travel through Rockhampton each day and, once complete, these vehicles will be able to bypass the middle of town and the 19 sets of traffic lights on the route north or south. In October last year the project was stalled when estimates for the project rose to $1.7 billion. The bump in the road sparked a rally and a convoy to Canberra. Early works on the Rockhampton Ring Road have now begun. Contracts for the first phase of the project were awarded in June with initial works to begin in late 2023.
ROCKHAMPTON REGIONAL COUNCIL PROJECTS
Farm Street/Alexandra Street Intersection Upgrades
Original budget: $3.9 million
Revised budget: $5.7 million
Increase: 46 per cent
Final costs for project to be confirmed.
About the project: The works on the upgrades to the Farm and Alexandra Streets intersection include the installation of underground stormwater drainage, new kerb and channel and subsoil drainage. The works also include new footpaths and the reconstruction of existing pavements, new travel lanes and upgraded street lights. The project is joint funded through the State Government TDIS program. It was originally budgeted to cost $3.9 million but has seen an increase of $1.8 million with the final price tag for the works now $5.7 million. The increase in cost has been a result of an increase in scope, including the additional pavement replacement, and cost increases of the relocations of services such as Ergon and Telstra. There have also been additional protection works carried out on the Prescare corner.
Limestone Creek Diversion
Original budget: $2.9 million
Revised budget: $3.9 million
Increase: 34 per cent
Final costs for project to be confirmed.
About the project: The Limestone Creek Diversion works includes the construction of a box culvert under Norman Rd and another under McMillan Avenue, as well as the excavation of a large open drain which will allow storm water to flow through to Limestone Creek. The works will help alleviate issues with flooding downstream and make it “significantly easier” for future development to the east and north. The project was fully externally funded and was originally budgeted to cost $2.9m. The project has seen a cost increase of $1m, with the final price tag now $3.9m. The increases have been attributed to unforeseen issues such as rock excavation and removal and disposal of historically illegally dumped asbestos materials.
River Rose Drive
Original budget: $2.25 million
Revised budget: $2.5 million
Increase: 11 per cent
Project still underway.
About the project: The River Rose Drive project works will link the two existing sections of the street from the Bunnings Complex to Forest Park Estate. The works will include the construction of the new road, including underground services, and a roundabout with a connection point for the future extension to Stringybark Avenue. The original budget for the project was $2.25 million with the revised price tag rising by $250,000 to $2.5m.
East Street/Stanley Street Roundabout
Original budget: $1.1 million
Revised budget: $1.4 million
Increase: 27 per cent
Final costs for project to be confirmed.
About the project: The works at the East Street and Stanley Street intersection includes the installation of a single-lane roundabout with new asphalt surfaces on all approaches, the installation of pedestrian refuges and upgrades to the streetlighting. The project is funded through the Federal Black Spot program. The project was initially budgeted to cost $1.1 million, with the revised price tag rising by $300,000 to $1.4 million. Minor modifications to existing stormwater infrastructure created some minor delays in the construction schedule.
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