Morack Golf: Redevelopment of Vermont South course blows out to $12.1m

The cost to redevelop a popular eastern suburbs golf course has blown out again, with the local council forced to find more cash to make it happen. This is why.

An artist's impression of the new pavilion planned at Vermont South's Morack Golf. Picture: Whitehorse Council.

The redevelopment of an eastern suburbs golf course is set to cost ratepayers and its local council close to $5m more than originally planned, with Covid-19’s impact on the construction industry hitting home.

Whitehorse councillors are set to award the contract for the Morack Golf Course redevelopment to Buxton Construction for $12.11m at its May 9 meeting.

The figure is $4.88m higher than the initial $7.23m budget first allocated for the project back in 2019.

The council then agreed to boost the project’s budget to $9.74m last year to ensure an “industry competitive customer experience”, and put plans out for public consultation in October.

But according to council documents, an extra $2.37m is now required for Buxton to carry out the works, which include a revamped multi-use pavilion and 25-bay driving range, and a new 18-hole adventure mini golf course.

“The impact of the Covid-19 pandemic on the construction industry … has seen an increase in labour and material costs beyond expectation during the tender period for this project,” council officers wrote.

“This evidenced towards the end of 2021 and during 2022 with contractors no longer being prepared to accept the risk of further increase in costs and potential supply chain delays due to Covid-19 and as a result, these risks are being priced into the tenders.”

“Trades such as structural steel, mechanical and electrical services have all increased in excess of 25 per cent above cost planned allowances during this period.”

The council has created a business case for the project with its overall costs passing $10m.

Officers also found removing the proposed mini golf course would save $1.13m, but would “significantly decrease the revenue expectations of the site.”

They have recommended councillors award the contract to Buxton, with the extra $2.73m required for the project to be sourced from “forecast savings across other projects identified during 2022/23.”

The council’s proposed 2022-23 budget, which went out for public consultation on April 29, also includes $2.51m funding to cover the shortfall.

Councillor Raelene Carr, who has the course in her ward, told Leader in October the redevelopment of Morack Golf was something she felt had been needed for a long time.

“A lot of residents have wanted to see an upgrade of the pavilion and for it to be a more modern place to go to,” she said.

“This needs to be up to speed because people are going elsewhere.”