Ashburton Mayor Neil Brown says there has been no budget blow out at the new library and civic centre.
Ashburton's new library and civic centre has been hit with delays pushing its completion back months into 2023, but it currently remains within budget. Photo: LDR / Jonathan Leask
Brown said that there is immense pressure on the project's budget but as it stands it is still within its $56.75 million limit.
The claim of a budget blowout in a submission on the annual plan drew the attention of councillors at the hearings last week, prompting Brown to refute the claim.
As a member of the project control group, Brown said there had been no mention of a budget blowout.
"We mentioned we have lost some time and there is certainly pressure on the budget, but there has been no budget blow out," Brown said.
What has been confirmed is that the project delivery has been pushed back from the end of this year into 2023.
What those delays will cost is still to be determined.
Council chief executive Hamish Riach said Covid restrictions and now supply chain issues are "impacting pressure on costs and the forecast completion date, which is now expected to be in the first half of 2023".
"The project is still within budget, which includes the sum previously set for contingencies, though it is fair to say there are real financial pressures, and costs are being very closely monitored."
The project had an amended budget of $51.6m in the 2018-28 long-term plan, but the budget was then increased to $56.75m to allow for contingency, due to the uncertainty around the impacts of Covid.
The budget includes $20m from the government's 'shovel ready' project funding.
Brown said that funding is not paid in a lump sum but is paid in instalments as milestones are reached in the construction.
The construction timeline is the project's overbearing issue due to industry's widespread supply chain issues, with materials like timber and gib board in hot demand.
Riach said this is a major pressure on the project's timeframe but "where possible, we are trying to minimise those issues by ordering well ahead of time".
There were a number of submissions calling for cutbacks on the Library and Civic Centre but Brown said the consultation on the project was completed three years ago and construction is already halfway through.
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