Skyrocketing construction costs raise the price of municipal programs by £500,000
PLANS to build a covered market and redevelop a gruesome site are set to cost taxpayers an additional £500,000 due to soaring construction costs.
Plans have already been approved for the £2.4million Jaywick Workspace scheme, which will include 25 affordable retail units, a café and a community garden, at Brooklands.
It is hoped that the project will regenerate the neighborhood, which is officially listed as the most deprived in the country.
But a report due to be presented to Tendring Council cabinet on Friday says a further £254,465 is needed ‘given the recent significant rise in construction costs’.
The cabinet is set to allocate the extra money from the New Homes Bonus, a government grant to councils to reflect and encourage housing growth, and will also seek additional funding from other authorities involved in the scheme.
Tendring Council leader Neil Stock said: “Inflation is the highest it has been in 30 years, but it is particularly felt in the construction industry.
“Brexit has played its part but it is mainly due to the global economic shutdown due to the pandemic.
“It’s deeply regrettable but we have to deal with it as best we can.”
Construction cost inflation over the past six months also means an extra £272,383 is needed for the £1.6million Starlings project off the High Street in Dovercourt.
Plans are already in place to regenerate the old, long-abandoned garage and Queen’s Head Hotel site into new parking, event space and restrooms.
The council firm is set to transfer the extra money from its business investment fund – and plans to demolish the Milton Road car park, under the scheme, could be postponed so that £74,000 can be reinvested in the main redevelopment project.
Harwich Councilor Ivan Henderson said work should have started before Christmas.
“People have been waiting for this project for years and expecting it to happen,” he said.
“It will be beneficial if the council can move forward.
“The faster they start, the less likely it is that costs will increase further. »