The budget for the Durham St upgrade has blown out by at least $1.2 million.

The Bay of Plenty Times, however, understands the $1.2m is only part of the expected cost increase for the streetscaping project, which started at $6.1m.

Tauranga City Council's finance committee is due to receive a report on the project's financial state on Tuesday next week, with a report on the progress of all streetscaping projects going to the projects committee at a later date.

The Bay of Plenty Times has sought more information from the council about the increased costs for Durham St and reasons for them.

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An artist impression of the future of Durham St. Image / supplied
An artist impression of the future of Durham St. Image / supplied

Financial tables presented in this week's annual plan deliberations, however, revealed an "additional budget" requirement of $1.2m in 2019-20 to finish the upgrade.

In December 2017 Tauranga City Council signed off $5.62m in funding to turn Durham St and Durham Lane into green, pedestrian-friendly student hubs.

The work is between Elizabeth and Spring Sts.

TGC told us, ahhh, it'll be OK. We'll be finished this soon. Some days we actually have a worker or two outside. I...

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The rest of the $6.1m cost was to be picked up by partners Waikato University - which opened a campus on Durham St this year - and the New Zealand Transport Agency.

The first stage of construction was due to finish in April this year and the second in 2021.

Work on the first phase started in May last year and is due to be finished by spring.

Roadworks on Durham St this week. Photo supplied / Chris Taylor
Roadworks on Durham St this week. Photo supplied / Chris Taylor

Project updates have listed issues with archaeological work, services located in unexpected locations and poor ground conditions.

The council was also grappling with soaring construction costs across most of its big capital projects.

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Last week the council's staff reported that learnings from the Durham St project and an independent review of council projects would be applied to future streetscape projects.

Bottles found in Durham Lane. Photo / supplied
Bottles found in Durham Lane. Photo / supplied

Plans for the second stage of work in Durham St included a bus interchange.