In March last year, it was announced the cost of the project had blown out to $64.4m, an increase of $9m. Photo / Bevan Conley.
In March last year, it was announced the cost of the project had blown out to $64.4m, an increase of $9m. Photo / Bevan Conley.
The Sarjeant Gallery redevelopment could have a final cost of $71 million — about $6.6m more than the project’s present budget.
That prediction was a “top end” risk assessment, project director Gaye Batty said.
She said the lowest, most optimistic forecast was $66m and a mid-range forecast would be $67.87m.
Those numbers were presented to the Whanganui District Council’s operations and performance committee.
Council chief executive David Langford said while all the funding hadn’t been secured, enough was being provisioned in the council’s annual plan to finish the project in full.
In March last year, it was announced the cost of the project had blown out to $64.4m, an increase of $9m.
According to the redevelopment’s latest status report, those risks were unforeseen complications with seismic strengthening and repairs to the building, cost hikes due to global financial pressures and exchange rates, offshore manufacturing capacity, and timing of delivery for items such as granite and the skylight roof panel system.
Weather events could also affect the national supply chain or interfere with the progress of works.
It was confirmed last month that the council had secured $2m in funding from the Government’s Better Off scheme, along with an $850,000 bequest from an estate.
Whanganui District Council chief executive David Langford. Photo / Bevan Conley
Councillor Phillipa Baker Hogan said it would be useful to keep the committee updated on the council’s contribution to the project, as well as expected operating costs once it opened.
Langford said presenting running totals of the council’s contribution, central government funding and money from third parties would be “an easy improvement” to make in future committee meetings.
Andrew Clifford was revealed as the new Sarjeant Gallery director last year and will join officially this month.
Batty said the anticipated opening of the gallery was April 2024, with the Sarjeant team set to install its first exhibition from the end of December.
“That planning is well underway.
“Certainly, the progress we would have expected to have seen at this point is behind, but I’ve heard good news this month that McMillan’s has actually secured an additional 10 non-resident workforce, so they can deepen the activities on site.”
In 2019, Palmerston North construction company McMillan & Lockwood was awarded the $20 million contract to construct the extension component of the redevelopment — the Te Pātaka o Sir Te Atawhai Archie John Taiaroa wing.
The status report states recent changes to border restrictions were likely to have a positive impact on recruitment from February onwards, and issues with material shortages were being mitigated by an off-site facility that was being used to store pre-purchased materials.
Councillor Rob Vinsen said after inspecting the redevelopment, it looked as if workers still had a long road ahead of them.
He asked if there were penalty clauses in contracts, should work not meet deadlines.
It was “old-school mentality” to be talking about penal clauses, and they were unlawful anyway, Langford said.
Upcoming activities at the redevelopment site include selecting a gallery cafe operator and the final detailing of the reception counter, retail space layout and interior floor covers in the main entrance.
The Sarjeant Gallery Trust will provide a fundraising update at the end of March.
