Factory scheme in Manchester has already blown budget once
Manchester council has been warned that costs on Laing O鈥橰ourke鈥檚 scheme to build an arts complex in the city called The Factory could go up again.
The landmark scheme has been designed by OMA and last year jumped 拢19m to a new figure of 拢130m.
But the council鈥檚 resources and governance scrutiny committee yesterday heard the complexity of the project had meant the scheme was now in danger of busting its latest price tag.
Councillors were told the 鈥渃omplexity鈥� of the building鈥檚 design is the project鈥檚 鈥渕ost significant challenge鈥�.
They heard this was acting as a deterrent to some contractors able to pick and choose more straightforward work amid Manchester鈥檚 booming construction market.
The city council鈥檚 director of capital programmes Jared Allen admitted the job had 拢4.1m in contingency funding that was currently 鈥渦nder pressure鈥�.
He said: 鈥淭he Manchester market is very, very hot at the moment, so complex projects are not as appealing to the supply chain.
鈥淲e are finding the supply chain isn鈥檛 as deep as it was in some areas. Only 11 of the 32 packages have been let.
鈥淲e are seeing increased pressure on budget. I can鈥檛 give an absolute cast iron guarantee as those pieces are mostly not procured.鈥�
Allen added: 鈥淲e鈥檝e done quite a lot of re-engineering to reduce some of the cost pressure.鈥�
A report to councillors said O鈥橰ourke had made good progress with steelwork contractor William Hare on site and this week the Bury firm began lifting a 125 tonne steel truss which will link a warehouse space with a theatre.
But Allen said contractors had discovered new drainage issues on the site, which was formerly part of the Granada Studios complex.
Allen told the committee the drainage issue related to the previously undocumented flow of foul water and 鈥渃auses a lot of delay and a lot of financial pressure鈥�.
He said the authority had written to development partner Allied London, asking it to cover the cost of the additional groundworks.
A report to the committee said a review of costs of the M&E package, which has not been let, had already been commissioned.
Named in honour of Manchester鈥檚 legendary Factory Records label 鈥� home to Joy Division, New Order, Happy Mondays and others 鈥� The Factory was originally designed to include a 2,300 standing-capacity theatre and a separate 5,000-capacity warehouse space for 鈥渋mmersive鈥� events. Its design was subsequently revised with a reduced theatre capacity.
The site sits at the centre of the new St John鈥檚 neighbourhood, planned to be a major creative hub in the city.
OMA beat a high-profile shortlist including Zaha Hadid, Bennetts and Rafael Vinoly to win the project in 2015. The job is due to finish in 2021.
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