By Dominique Tassell
Southern Downs Regional Councillors will vote on whether to commit extra funds to the Stanthorpe Art Gallery and Library project, reduce the work being done on the project, or scrap the project entirely at next week’s Ordinary Council Meeting.
A late agenda item was attached to the agenda for next Wednesday’s Ordinary Council Meeting, recommending that Council proceed with the one construction tender submission received for the project.
In November 2021, Council was awarded $2m as part of the Building Better Regions Fund to upgrade the Stanthorpe Library and Art Gallery.
Council co-contributed $2m bringing the total available project funds to $4m.
The one submission received in the recent tender was from St Hilliers Pty Ltd.
The agenda item states that “the submitted price was well above the assigned budget of $4m” and later stated there may be excess costs of $2m to $2.5m to cover.
The agenda states that “negotiations are occurring with the tenderer with a view to reducing the submission price”.
The higher than expected cost is attributed in the report to “the impacts of the Covid pandemic, increasing inflation, rise in cost of steel products and shortage of trades and subcontractors due to ongoing flood and other disaster events”.
Staff have recommended that Council proceed with the one tender received, on the basis that it is unlikely Council will receive future grant funding for the project.
Councillors will be asked to consider four options, the first being that Council proceeds with the submission and finds additional funds.
The second option is to reject the tender submission and go back to the market seeking further tender submissions.
The third option being considered is to reduce the scope of the project, and finally, the fourth option is to cancel the project and return the $2m in funding to the Federal Government.
