Hamersley Public Golf Course redevelopment update
The City of Stirling has made the responsible decision to postpone the Hamersley Golf Course Redevelopment project.
Due to the current construction industry market conditions, including high costs for civil and surging demand, the City of Stirling has made the responsible decision to postpone the Hamersley Golf Course Redevelopment project to ensure ratepayers receive value for money.
Multi-sector stimulus funding announced as COVID-19 economic support measures by the Federal and State Governments has come to market simultaneously, causing a significant increase in tender prices associated with civil and building construction, including brickwork and steelwork. In addition to the high demand for construction works, these industries have also been directly impacted by a skilled labour shortage as a result of border arrangements during the pandemic.
The construction indices for Western Australia increased by approximately 11.6 per cent in 2021 with prices for masonry, concrete, reinforcement and structural steel increasing between 25-76 per cent.
In 2020, the City undertook community consultation to inform the redevelopment, with detailed design and additional consultation completed in 2021 and capital works budgeted for in the 2021/22 Annual Budget.
On completion of the detailed design and documentation, an independent Quantity Surveyor prepared a pre-tender cost estimate for the Hamersley Public Golf Course Redevelopment project.
This cost estimate was significantly higher than the budget allocated for the project and though the City considered several best value engineering options, the project could not be delivered within the approved budget.
Therefore, the City made the decision to postpone the project as it does not believe that the current high construction costs represent value for money for ratepayers. While we appreciate community interest and support for the project, the City must ensure our services and facilities deliver value for our ratepayers and community and this is considered the most responsible decision in the current market.
The City will review its construction procurement strategy for this project later in 2022 and we will provide updates to the community as they become available.
The City intends for the project to proceed when market conditions allow for tender prices to align with the budgeted project costs and ensure we can deliver value for money.
