A joint government-funded project to upgrade a notorious Brisbane roundabout is expected to cost almost $60 million more than first budgeted because of pandemic-related supply chain issues and a broadened scope.
Brisbane City Council released the business case for its $126 million Indooroopilly roundabout upgrade late last year, with work tipped to start in mid-2021 for an early 2024 completion.
The growing western-suburb bottleneck already supports more than 55,000 vehicles a day, and demand is expected to increase. Between 2014 and 2019, 32 crashes were recorded on the roundabout, at the intersection of Moggill Road and Coonan Street.
Under the council’s initial plan, which has drawn a $50 million funding commitment from the federal government, Coonan Street will be modified to create an overpass for inbound traffic to clear an uninterrupted Moggill Road before merging safely.
But details in a budget amendment put to council by civic cabinet this week show the project’s expected cost has grown to $183.29 million as a result of pandemic-driven market conditions, including supply chain issues, price rises and contractors’ lower risk appetite.
Tender pricing received in July by three shortlisted groups was already “significantly higher than anticipated”, the budget amendment states.
“These risk factors are likely to lead subcontractors to reduce the duration for which they are willing to maintain fixed pricing, placing greater risk on construction delivery and principal contractors.”
The document also cites an increase in major government and private sector construction projects across south-east Queensland, including Cross River Rail and Queen’s Wharf, along with national and international demand, as potential market factors.
A breakdown of the major cost increases was redacted from the document as commercial in confidence.
However, about $3 million more is required to cover increased property prices for land acquisitions, while an extra $5 million is needed to cover the cost of complex relocation work for water and gas mains, along with telecommunication and power lines.
The planned upgrade includes an overpass and traffic lights.
The council has also expanded the scope of the project to the Moggill Road corridor upgrade, requesting an additional $1 million for the design of safety and capacity works including indented bus stops, road-widening and turning restrictions.
Cyclist safety improvements would also be considered. Council’s original plans showed cyclists would have to navigate a slip lane when crossing Moggill Road at the Coonan Street intersection.
Some surplus land was expected to be acquired by council’s investment arm, the City of Brisbane Investment Corporation, at the completion of the project.
In a statement last week, lord mayor Adrian Schrinner said a contract for the work was expected to be awarded within weeks. Major demolition of the former Audi dealership at the centre of the roundabout was expected to be the first step once asbestos removal has been done.
Responding to further questions on Tuesday, infrastructure committee chair Andrew Wines said council was confident the project would be completed within the allocated budget, but was hopeful of securing additional federal funding for the next stage of the Moggill Road corridor upgrades.
“Work has already commenced on identifying initiatives … between High Street and Russell Terrace that will best reduce congestion,” Cr Wines said.
The council’s Labor opposition leader, Jared Cassidy, said the cost increase was the latest in a line of pricing blowouts, including the Brisbane Metro and Kingsford Smith Drive upgrade.
“This LNP lord mayor has racked up a $60 million cost blowout before the project has even started, and Brisbane residents are picking up the tab,” Cr Cassidy said.
Article Source: www.brisbanetimes.com.au
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