Plans for a multi-million pound upgrade of Dumfries Academy are up in the air due to sky-rocketing construction costs – and major doubts over funding.
Steel prices have risen by 60 per cent since 2020, while mechanical, electrical and plumbing prices have more than doubled in some cases.
Dumfries and Galloway Council’s property services chiefs this week admitted that the revised costs put forward by the main contractor are “beyond the affordability cap in place for the project”.
It is understood that this is in the region of £2.7m over the budget.
Meanwhile, the council is banking on the Scottish Government to stump up half the cost of the redevelopment project – which could be in excess of £20m – however Holyrood ministers have gone silent. A report, due to be tabled at the education committee next week, notes that the council applied in September last year for funding to pay for the redevelopment of Dumfries Academy, as well as the relocation of Loreburn Primary to the secondary school site.
The report states: “Whilst it was anticipated that a decision would be made by the end of 2022, to date no decision has been shared with any local authority, and there is no indication of when a decision announcement will be made.
“The reasons for this delay are unknown.”
The council aims to complete the academy’s redevelopment and Loreburn Primary relocation by the summer of 2025 under phase two of its Dumfries Learning Town initiative.
However, the delay and uncertainty over Holyrood funding, along with “very volatile” construction costs could have a significant impact on what can actually be delivered.
A total of £23.6m has been set aside from the council’s capital investment fund for the relocation of Loreburn Primary and only a partial refurbishment of Dumfries Academy.
But full scale redevelopment plans have been drawn up by education chiefs in the belief that the Scottish Government would provide up to 50 per cent of the costs over a 25-year period.
If Holyrood doesn’t stump up the funds, then the cash-strapped council could potentially have to scale back the full development and opt for a partial upgrade of Dumfries Academy instead.
The huge hike in construction costs is laid bare in the education committee report.
It states: “The prime costs are influenced by material prices and unfortunately the marketplace remains very volatile, with the cost of steel for example having seen prices rise from £1,800 per ton in 2020, to more recent values on current projects of £3,200 per ton, partly due to availability of supply, but also due to energy cost increases on the production side.
“Another heavy element of a construction project is the mechanical, electrical and plumbing elements, and these have see rises within the same timescale from £450m2 to as much as £1,100m2.”
“Once financial close has been achieved, this locks in the cost and any fluctuations due to volatile market conditions will not affect the quality or scheduled completion date of the new school.”
