Council Minutes - Town of Cambridge

COUNCIL MINUTES
TUESDAY 28 AUGUST 2012
works. Analysis showed that the pre tender estimate was consistently below every tender
price for preliminaries, electrical works and structural works. These are major components of
the project. In essence, insufficient allowance was made for these aspects of the project.
The Administration has reviewed the project scope and tenders to determine what, if any,
savings can be made. Approximately $20,000 of the tender price includes temporary
facilities to be used (primarily as temporary toilets and change rooms) during the
construction period for the cricket club needs. Approximately $ 20,000 has been tendered for
external paving including car park. Any further savings would require significant reduction in
scope by scaling back the size of the building extension. These costs have not been
removed from the revised budget at this stage.
The original project budget was $920,000 inclusive of construction, rise and fall, fees and
contingencies. The revised project budget is now:
Construction budget $1,070,230
Fees $47,125
Sub Total $1,117,355
Contingency (approx 5% of construction) $52,645
Total Budget $1,170,000
West Coast Sporting Association agreed to contribute $83,000 towards the initial project
budget of $920,000 (ie 9% of budget). During tender analysis, discussions were held with
West Coast Sporting Association as to the matter of budget shortfall. They have considered
this matter, and offered to increase their total contribution to the project to $99,000 in
recognition of increased building costs to maintain scope. This equates to 8.5% of budget. It
is recommended that West Coast Sporting Association be required to fund 9% of the
construction and fees budget which would be $ 100,000, with the Town retaining the
Contingency budget.
The Club has asked for consideration of a suitable payment schedule recognising the
limitations of sporting clubs to raise large one off payments. It is proposed that West Coast
Sporting Association agree to fund $40,000 once site works commence; $43,000 prior to
practical completion of the works and the remaining $17,000 as two equal annual payments
in subsequent financial years.
The project still holds a contingency. This will be used if necessary for issues arising during
construction against the current scope. If West Coast Sporting Association request additional
works to be undertaken during the construction these will need to be fully funded by West
Coast Sporting Association. Once the project is complete, any remaining contingency will be
retained by the Town as project savings as this amount is being fully funded by the Town.
POLICY/STATUTORY IMPLICATIONS:
In line with Council Policy, Council approval is necessary for the award of tenders greater
than $100,000 unless the decision is delegated to the Chief Executive Officer.
FINANCIAL IMPLICATIONS:
The forecast cost for this project will require an increase in budget funding by $250,000. It is
proposed that Council approve by an absolute majority, an increase of funding of $233,000
to be sourced from the Endowment Lands Account and that $17,000 be sought from West
Coast Sporting Association.
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