Yanchep Surf Life Saving Club building could cost as much as $8m when finished

It could cost the City of Wanneroo $1.13 million more than budgeted to finish the Yanchep Surf Life Saving Club building.
It could cost the City of Wanneroo $1.13 million more than budgeted to finish the Yanchep Surf Life Saving Club building.

FINISHING the Yanchep Surf Life Saving Club building will cost the City of Wanneroo an extra $1.13 million , bringing the total cost to almost $8 million.

The council is due to consider awarding a new contract to complete the building at Yanchep Lagoon at its March 7 meeting.

According to a report tabled at this week’s briefing session, the preferred tender from Bistel Construction would cost the City almost $3.39 million.

Works stalled on the building last year, prompting the City to terminate its $4.53 million contract with DGX Construction (formerly Diploma Construction) in September and left the structure unfinished throughout summer.

The March 7 recommendation asks council to note extra funds will need to be allocated in the City’s 2017-18 Budget to complete the works, with a revised finish date for this September.

The report said about $4.5 million of the total cost was to be sourced from the developer contribution plan (DCP) for community facilities in Yanchep and Two Rocks.

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“At the meeting of the Yanchep Two Rocks development contribution plan technical advisory committee on October 14, 2016, the implications of the retendering process were discussed with the affected landowners,” it said.

“They requested that ‘the landowner group be engaged at the appropriate time to consider the implications of the cancelled contract on the Yanchep Two Rocks DCP’.

“The additional funding required as a result of the re-tendering equates to $1,127,874 which will need to be fully pre-funded through municipal expenditure as an interim step until a review of the DCP is undertaken.”

That review is due to take place in mid-2017; currently the DCP requires Yanchep and Two Rocks developers to give the City $2780 per lot.

In December, the City awarded Bistel a $2.15 million contract to build the sports amenities building at the Yanchep playing fields.

The council report said the City received a Corporate Scorecard report to ensure Bistel had the financial capacity to do both projects.

“Corporate Scorecard confirmed that Bistel Construction is trading in a profitable manner,” it said.

“The size of its annual revenue indicates that the contract in question is within the appropriate capacity and risk based thresholds.”

In its tender response, Bistel said local suppliers would have the first opportunity to provide materials such as concrete supply and placement, ceramic wall and floor tiles, general labour and second fix carpentry.

“Bistel Construction proposed alternative engineering methods that offered possible cost savings,” the council report said.

“Bistel Construction demonstrated a very good understanding of the issues with the existing works completed to date, and provided methodologies for rectification.”

It said the city appointed an external probity advisor to monitor the tender process.

UPDATE, March 9: THE Wanneroo council has accepted a $3.39 million tender for Bistel Construction to finish building the Yanchep Surf Life Saving Club.

Councillors at the March 7 meeting unanimously supported a recommendation to accept the tender and note that the City will need to allocate an extra $1.13 million in its 2017-18 capital works budget to cover the funding shortfall. 

Work is set to be completed by October.