Scheme by Dutch practice OMA was given initial budget of 拢110m six years ago
OMA鈥檚 Factory International venue in Manchester is set to have cost more than 拢240m 鈥� well over twice its original 拢110m budget 鈥� by the time it hosts its first large-scale performance next month, according to the city council鈥檚 latest funding estimate.
A report to members of Manchester City Council鈥檚 Executive committee is seeking authorisation for a further 拢22.2m to complete the futuristic cultural hub, which features a 1,600-seat theatre and a 5,000-capacity space called the Warehouse.
While OMA is concept architect for Factory International, Ryder Architecture was appointed as executive architect in 2020. The scheme is being built by Laing O鈥橰ourke.
Back in July councillors approved a further 拢8.7m of capital funding, taking its budget at the time to 拢219.5m. They were warned that an extra funding request for a larger sum to finish the venue would be made this month.
July鈥檚 report listed 鈥渄esign challenges鈥� related to the building鈥檚 complexity, work required on the secondary steelworks for the venue鈥檚 proscenium doors, humidity damage and 鈥渉yper-inflation鈥� on the procurement and delivery of the final works among the cost pressures being faced.
Documents published ahead of today鈥檚 meeting give a total budget for Factory International of 拢238.8m. However the latest ask would take funding committed to the project to 拢241.7m. Public realm works have also seen cost increases of above 拢1m but are classed as separate from the main building costs of the venue.
In July, Manchester City Council anticipated that the additional funding now being sought would 鈥渋nclude the costs of the commissioning period and any changes in the construction final accounts鈥�.
A breakdown of the latest funding request says 拢15.7m of the amount reflects 鈥渞evision of the completion date to September鈥� including staffing costs, storage and contractor claims, acceleration measures, additional works and 鈥渃rystallisation of risk items and contingency spend鈥�.
The total 拢22.2m figure also includes 拢5m in contingency funds, 拢800,000 in client side fees for the retention of key project delivery staff and 拢700,000 for unspecified 鈥渁dditional risk items under negotiation鈥�.
> Also read: Manchester鈥檚 new joy division: Factory International
When the project secured planning permission in 2017 the government had committed 拢78m towards its then budget of 拢110m. Earlier this year Manchester said government support for the venue 鈥� named in honour of Factory Records 鈥� stood at 拢110m.
In June, the city council announced a naming-rights partnership with insurance giant Aviva that will reportedly offset around 拢35m of the cost of delivering the venue. It will see the complex named Aviva Studios, although the name Factory International is likely to remain widely used.
A report to Wednesday鈥檚 executive committee meeting said the income Manchester receives from the naming rights deal would be 鈥渁pplied to the capital financing costs of the project over its life鈥�, however it cautioned that the income 鈥渋s not guaranteed鈥�.
Factory International鈥檚 inaugural event is due to be director Danny Boyle鈥檚 鈥淔ree Your Mind鈥�, a large-scale immersive performance based on the Matrix films. It is scheduled to run from 18 October to 5 November.
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