The project to earthquake strengthen Wellington's Town Hall has been hit by another budget blowout – and the cost could now rise to $329 million.
The project was budgeted at $182 million last year, but Wellington City Council today said the project would increase by between $70 million and $147 million. That would put completion cost at between $252 million and $329 million.
Wellington Mayor Tory Whanau said news of the cost increase was "extremely tough to hear, but not unexpected".
The proposed budget increase will be put to councillors for voting on October 25.
Whanau said council was dealing with challenging economic conditions and the project started by a previous council was now more than halfway through.
If approved by councillors, seismic strengthening for the heritage building will now cost up to $329 million. (Source: 1News)
"There's no way we can turn back. We must see it through to completion.
"However, I join Wellingtonians at being frustrated and annoyed at the news of another cost increase."
The project was first budgeted at $43 million when it started in 2013. But it has suffered from ballooning costs, with the price tag put at $182 million last year.
The Town Hall is a grade one heritage building and sits on reclaimed land – making the seismic strengthening a highly complex undertaking.
The project requires lifting and propping the building to install new base isolators and extensive deep piling, while having to protect and restore the building.
A hundred and sixty-five base isolators are being used.
Some of the piling work for the building's auditorium is still incomplete because ground conditions have proved worse than expected.
"This is because ground conditions have been even worse than expected including contamination, geotechnical profile, and the extent of dewatering necessary, impacting on time and cost," the council said.
The Town Hall first opened in 1904 but was closed in 2013 after the Seddon earthquake.
Along with rising costs for labour and materials, the impact of Covid was also offered as a reason for the steep increases in the Town Hall project budget.
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