Revealed: The costs for new southern Gold Coast swimming pool at Palm Beach
Work has started on a major southern Gold Coast pool and community centre – and the money being sunk into it has been revealed. See the cost and why it has been delayed.
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Work has begun on a major southern Gold Coast pool and community centre. The budget for the Palm Beach aquatic centre has blown out – by a lot. From $54 million to $87.5 million.
There’s a bigger story here, about the post-Covid inflation wave, causing costs on projects to skyrocket. Imagine the impact on much bigger projects?
Last year’s State Budget papers showed $1.2bn for light rail Stage 3 Broadbeach to Burleigh, compared to $1.044bn for the previous year.
But back to Palm Beach, where in November last year councillors behind closed doors were told an independent quantity surveyor would prepare an updated estimated project cost.
Your columnist has finally secured that report. It showed $54 million was “insufficient”.
Council ticked off on this project in June 2020. What had it dug itself into here?
The report shows nothing much different from you or I undertaking a home renovation in the past 12 months or building a new property. It’s just at the higher end of the scale.
Covid had caused both “supply and demand shocks” at unprecedented levels.
Council officers for first time outlined the following reality of the market:
* building materials had experienced price increases of up to 65 per cent – steel was at 63 per cent.
* skilled labour had increased in cost by 15 to 30 per cent.
* steel sheets were costing 200 per cent more.
* record high construction jobs vacancies were occurring.
* net overseas migration of labour would take time to catch up.
Residents have been told the much needed pool will open in early 2024. They have complained bitterly about losing access to their ageing public facility in this suburb.
The latest report suggests the opening would now be mid-2024.
Council in responding to questions by your columnist estimated the total budget now will be $87.5m, confirming this was due to the increased costs in supplies and staff wages.
Asked if council was now having to re-evaluate costings regularly for major projects given these challenges, a spokesman said: “Yes.”
On the opening, the spokesman added “Weather dependent, we expect to open the facility in June (2024)”.
Mayor Tom Tate regards the centre as an important and much-needed piece of community infrastructure for the southern Gold Coast.
“I know officers have been working hard to deliver this project, especially under the current circumstances of unprecedented rising costs of construction,” he said.
Meanwhile, the council is currently asking ratepayers for feedback on the City Budget 2023-24. The surveying is open until February 28.
Think about light rail, the future of the HOTA precinct, those billion-dollar three-year projects – how can they be managed better, how do we prevent a blowout causing a rate rise.
The Palm Beach pool splash for cash suggests all of us need a rethink on what are priorities.
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