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Daily Record
Daily Record
National
Jack Thomson

£1.8m rise in Paisley Museum costs puts flagship project budget 'under some pressure'

A £1.8 million rise in costs connected with the transformation of Paisley Museum has put “some pressure” on the flagship project’s budgets.

The building – undergoing a £45 million regeneration into a “world class attraction” home to galleries, an observatory and a heritage centre – is expected to open next year.

But it has emerged fees associated with the refurbishment have risen – prompting a senior Renfrewshire Council officer to field questions on the impact this could have on available funds.

Councillor Alison Ann-Dowling, Labour finance spokesperson, asked if there was any “headroom” left if costs were to spiral further.

She told a finance board meeting: “It is disappointing to see that we do have such a substantial increase in the costs but I thank the officers for the very full overview of the reasons attributed to those cost rises of £1.8m.

“I would like to ask, in terms of the contingency allowance that we have for any potential further increased costs, where do we sit on that?

“I know you can’t really foresee – you don’t have a crystal ball, so you can’t foresee if there’s any unforeseen costs coming down the line. Do we have some headroom left in case there are even more costs ahead?”

Alastair MacArthur, the council’s director of finance and resources, said: “Obviously, this level of increase in cost is not something that anybody would wish to see but hopefully the report outlines the reasons for that.

“The increase in cost on this scale undoubtedly puts the overall level of contingency budget available and total budget for the project under some pressure and the works remain ongoing, so there is the potential for, I suppose, further costs to emerge.

“I would think that is less likely given the point that the works are at in terms of the stripping back to the bare walls in effect of the building.

“We’ve hopefully discovered everything that could possibly not have been foreseen within the assumptions around when the original budgets were set.

Work continues on the flagship Paisley Museum project (Andrew Neil)

“But...it does put the total budget for the project under some pressure and the level of contingency available will continue to be actively reviewed.”

The most significant hike was for the multi-disciplinary design team, which rose from £2,598,349 to £4,164,804.

However, project management costs also went from £193,856.80 to £341,114 and those for a quantity surveyor from £258,000 to £375,082.31.

The changes represent a combined rise in excess of £1.83m which will be covered by existing resources “earmarked for contingencies”.

A report explained some of the “key events” which have affected the project, citing the impact of the Covid-19 pandemic in slowing the progress of the design, due to restrictions on travel, non-essential construction work and access to buildings.

Delays hit the anticipated completion of the main build programme – prolonging it from November 2022 to January 2024 – having been driven by “complexity of the works” and discoveries requiring changes to the design.

This also meant a prolonging of consultant appointments to cover services needed for the duration of the main build contract.

Additionally, a hold-up is expected in the completion of the exhibition fit out contract from this November to May 2024, which the report added was “linked” to the delay in the main build programme.

The council believes the overall project can deliver around 125,000 visitors a year and a £79m boost for the economy over three decades.

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