Liverpool park project budget jumps $6.698m as asbestos costs mount

A Liverpool City Centre park and open-space project has received a $6,698,000 budget increase after Liverpool City Council recorded a $6.7 million cost escalation, mainly attributed to asbestos remediation works.

The additional funding will come from the Liverpool Contributions Plan 2018 and be allocated in the 2027/2028 financial year. It is earmarked for the project’s external park and open-space components.

Council declined all tenders for the project’s major works and authorised negotiations with the first- and second-ranked tenderers. Chief Executive Officer Jason Breton can finalise the negotiations and sign a contract with the tenderer considered most advantageous to Council, provided it stays within the approved budget.

Any savings achieved through negotiations are to remain in the project as contingency. Costs that are not reduced through negotiations are to be managed through the project risk allowance.

The project’s development application is in the final stages of assessment, with one matter outstanding. Council noted that no significant consent conditions are expected after landscaping and civil designs were amended to address issues raised during the assessment process.

A contract cannot be awarded until negotiations with the two highest-ranked tenderers are complete and development consent has been issued. Council said that approach would limit further cost escalation caused by delaying procurement and reduce the risk to deadlines under the Western Sydney Infrastructure Grants program.

The resolution does not disclose the project’s original budget, tender prices or final contract value. The $6,698,000 allocation is scheduled for 2027/2028.

Council also noted that the development application is expected to proceed after the outstanding matter is resolved, but the supplied information does not identify the project by name.