Spiralling costs could bring halt to construction of schools and council homes in Aberdeen
Councillors in Aberdeen are to consider whether to pause or abandon work to build new schools, nurseries and social housing due to increasing construction costs, according to reports.
Proposals to help the local authority make savings on current developments and to cancel new projects altogether will be put before councillors for a vote next week.
Soaring costs caused by global events have potentially added millions to the budget of the city’s flagship projects. Over the next five years, the ongoing work to Union Terrace Gardens is expected to cost an additional £1.5 million – taking the grand total to very nearly £30m.
The £400m replacement exhibition centre, Teca, has gone up by another £2m, while an ongoing court case over the cost of the refurbishment of Aberdeen Art Gallery is adding further uncertainty, The Press & Journal reports.
Among the work to be put on hold could be the building of hundreds of new council homes.
According to a report put together for councillors by council resources director Steve Whyte, building sites at Craighill, Kincorth, Tillydrone and Kaimhill could be shut down “at the next most appropriate milestone”.
Mr Whyte said the pause would be “prudent”.
“It is considered that the current cost proposals are not delivering best value,” he added.
During that break, cost-cutting measures such as sourcing different materials and contractors, or changing how many houses will be built at a time, will be considered.
It comes more than a year after Aberdeen City Council confirmed it would manage to build only half of its target of 2,000 homes by this year’s deadline due to rising construction costs plus a shortage of materials and workers.
Billed as the city’s biggest council housebuilding programme in more than 50 years, £250m was pledged to the programme in 2018.
But with only 350 houses added to the council’s housing stock by June 2021, it was revealed only “around half” of the planned 2,000 homes would be completed in the original time schedule.
Elsewhere, the site of the new Tillydrone Primary School, where foundations have already been laid, is likely to be mothballed for months while a new contractor is found to build it at a price the council can afford.
Prices for the new Riverbank school – which will feature a sports pitch, outdoor classroom and sensory garden – have increased by more than a third, up £9.9m to £36.2m.
Mr Whyte said the outstanding work on the new Tillydrone primary has been priced, but was pitched “significantly over budget”.
Plans to build more nursery space at St Joseph’s RC Primary could be scrapped altogether after the local authority said there is “no identified need” for it.
A new link road through Pitfodels has also officially been cancelled, at a saving of £5m.
Costs of the replacement mortuary at Foresterhill are expected to be re-examined, along with a new Bridge of Don recycling centre and Dyce Library.
But all three will go ahead, with millions in funding secured from the government to help with the cost.
Projects that look to be spared any funding changes include the Berryden Corridor improvement scheme, the planned hydrogen hub as well as the city centre and beach masterplans.
It is thought “priority” upgrades to the B999 Shielhill junction in Bridge of Don and the extension for Bucksburn Academy will not face any upheaval either.