Gladstone pump station upgrade blows out by $2.1m
The cost of Gladstone’s A01 Chapple Street Sewer Pump Station Upgrade project has blown out by more than $2m above its $6.4m original price tag.
When the project was touted in 2016, Queensland Premier Annastacia Palaszczuk followed with a Christmas infrastructure funding announcement of $2m in November for the $6.6 million plant.
“$2 million from the State Government and $4.4 million from council to upgrade an ageing sewage pump station at Chapple Street to bring it up to environmental standards,” the announcement stated.
Work commenced on the vital infrastructure upgrade, but progress was soon delayed when a concrete storage tank had to be replaced, adding to the project’s cost.
“In September 2017 during hydrostatic testing of the emergency storage tank, cracks occurred, and the tank had to be demolished and rebuilt,” council said in a statement.
“A geotechnical report attributed this to latent ground conditions.
“The cost impact on the project was less than a 4 per cent increase.”
As the project progressed to its completion date on July 17 this year, the budget was updated several times, council said.
“This project had a preliminary design and construction estimate of $6.4 million, $2 million of which was funded by a State Government grant,” council said in a statement.
“This was a staged, multi-year project which commenced with concept design in 2015.
“The final stage of the project reached practical completion on 17, July 2020.
“There have been a number of budgets set for the project as it developed over the five years of the project and, as is usual practice, the budget was updated following detailed design (completed between 2017 and 2019) and open market tender for construction (in 2019).”
Due to the multi-year delivery of the project, the council said cost variations often happened with such work.
“As often happens with these types of projects, there were cost variations for construction including for latent conditions encountered on the site, like presence of groundwater and acid sulfate soils identified during excavation,” the council said in a statement.
“Final overall cost inclusive of concept design, detailed design and construction was $8.5 million.”
Gladstone Regional Council called for tenders to conduct odour control measures on the Chapple Street plant once work was finished in July this year.