The council decided in September to reject tenders for the work because both had come in above the $2,020,000 budget. Instead, senior staff commenced talks with the two tenderers – Kane Constructions Pty Ltd and Van Mal Group Construction Pty Ltd, both of Sydney, in an effort to reduce the price. They then called a second round of tenders.

At their most recent meeting, councillors decided to run with Van Mal Group’s revised $2,149,240 (excluding GST) bid. Operations director Matt O’Rourke said the council’s capital works program would need to be reviewed to find the additional $161,193 needed. This will be done as part of the September quarterly review.

“Options available include the transferring of surplus funds from the Seiffert Oval Pavilion and potentially, the Performing Arts Centre (PAC) ,” he said.

General manager Warwick Bennett said he was concerned that quantity surveyors’ estimates for both the PAC and Rocky Hill were less than construction tenders. Mr O’Rourke put this down to to several factors, including the site’s complexity, current high demand in the construction market, high end finishes in the building, movement in price between the grant application and the request for tenders and scope creep in the final design plans issued.  

Mayor Bob Kirk told The Post that while it was wonderful that the State and Federal Governments were dishing out more regional development funds, it had helped create a buoyant construction market which was being reflected in pricing. The federal government contributed $1.25 million to the museum upgrade under its Building Better Regions Fund.

The reduced Rocky Hill price achieves about $800,000 in savings through scope reductions and changes. A planned rooftop garden will be removed, along with other landscaping. There are also changes to electrical, including alternative internal lighting systems, and mechanical aspects, as well as finishes.

Mr Bennett said future budgets would allocate money for landscaping to make up for what was lost this year.

Senior staff said the changes would not detract from the design intent and the minimum requirements for the museum.

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