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12
Mar
Why has cost of Harrogate Convention Centre upgrade soared by 32% before work starts?
A 32% increase in the cost of a project to upgrade Harrogate Convention Centre is down to inflation and the contract tender process, North Yorkshire Council has said.
On Tuesday (March 10), the council revealed that its plans to reconfigure studio two at the centre to create additional breakout space had soared in cost.
Increasing breakout space is seen as key to attracting larger conferences and generating more income.
The planned transformation of studio two, which would provide breakout conferencing facilities for about 1,200 delegates, could generate an extra £1.7 million annually, the authority has claimed.
However, according to a report due before the council’s executive, the project budget has now increased from an estimated £7.1 million in December 2024 to £9.4 million.
A "lid-off" architect's CGI of how Studio 2 will be reconfigured.
The Stray Ferret asked North Yorkshire Council to explain why the cost had increased by £2.3 million.
A spokesperson referred us to the executive report for the explanation.
The report says that the December 2024 estimate of £7.1 million was a “high level, desk-based estimate based on outline design information”.
Council officials then carried out a “pre-tender estimate” of £8.4 million, which followed a “year of inflation and detailed design development”.
The further rise to £9.4 million was attributed to the contract tender process, which the council's in-house property management company Align Property Services deemed to be at "market value rates”.
The report says:
The tender return was evaluated by Align Property Services and deemed valid. It is within market value rates and is recommended for acceptance.
However, details of the contract — which are included in the papers at the executive meeting — have been kept secret from the public.
The Stray Ferret asked the council why details of the contract were restricted when the project relates to a loss-making venue which is publicly subsidised.
The council said the report was deemed commercially sensitive as it relates to “financial or business affairs of any particular person (including the authority holding that information)”.
A spokesperson for the authority added:
Information regarding the details of the contract will be available on our website in due course.
Councillors will be recommended to approve the funding and the award of a contract for the construction at the meeting next week.
Subject to approval, the council estimates that building work could start as early as this summer.
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