Design complexity and inflation among issues blamed for price tag almost doubling from 拢45m to 拢80.1m
A lack of interest from contractors, 鈥渦nprecedented levels鈥 of construction inflation and complex design are being blamed for the near doubling in cost of the planned V&A Museum of Design in Dundee.
Dundee city council admitted this week the price tag for architect Kengo Kuma鈥檚 Tayside museum has rocketed from the original estimate of 拢45m to 拢80.1m, ahead of a meeting of its policy and resources committee, tasked with approving the building鈥檚 funding package.
Japanese architect Kuma won a design competition for the 鈥渇loating鈥 structure in 2010, prompting concern from rival practices the project could not be delivered for its headline price.
But the 拢45m figure remained until last week, when Dundee recommended councillors approve a 拢76.2m fixed-price contract with preferred contractor Bam Construction, as part of a total package worth 拢80.1m.
Mike Galloway, the council鈥檚 director of city development, said in a report to councillors that a preliminary examination had found key issues behind the cost overrun were 鈥渢he highly complex nature of the building鈥檚 structure鈥, and in particular the 鈥渦nusual extent鈥 of temporary works to construct external walls in advance of the roof.
Galloway also blamed the impact of 鈥渦nprecedented levels of construction inflation鈥 on the tender process that were 鈥渕uch higher than any regional inflation indices would suggest鈥.
He added there had been 鈥渁n unexpectedly low level of market interest from main contractors鈥 which had reflected 鈥渢he risk levels associated with such a complicated and unique project鈥.
Bam was chosen as preferred main contractor on the project in September last year under the first stage of a two-stage tender process, after a two-horse race with Sir Robert McAlpine.
Two other shortlisted contractors had withdrawn from the tender process earlier.
Galloway said council officers, Bam and members of the building鈥檚 design team had managed to find a potential 拢6.5m of savings that could be made through design changes, but concluded that they would be too 鈥渟evere and detrimental鈥 to the quality of the building, which is the centrepiece of a 拢1bn Dundee Waterside regeneration project.
Charlie Sutherland, a director with Sutherland Hussey 鈥 one of the firms pipped by Kuma to the job 鈥 said the client had wanted 鈥渁 Lamborghini for the same price as a Lada鈥.
Bam and Kuma had not responded to 好色先生TV鈥檚 requests for comment by the time of publication.
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