The cost of Leicester鈥檚 拢48m theatre project is at risk of going up yet again, the city鈥檚 council has admitted. Turner and Townsend is the project鈥檚 QS.

The cost of the Rafael Vi帽oly-designed building has already spiralled from 拢26m to 拢48m. Now the price tag could get bigger again due to rising materials costs.

Mike Candler, cultural quarter project director at Leicester City Council, said 87% of the 拢48m contract price was fixed. This leaves 13% or 拢6.25m at the mercy of market fluctuations. 鈥淲e understand that materials could rise by up to 20% in the next two years,鈥� said Candler. A 20% increase on 拢6.25m would add a further 拢1.25m to the overall project cost.

The Construction Products Association said manufacturers were 鈥渇acing enormous increases in energy costs鈥� and significant hikes in the prices of raw materials. It warned this would continue for the 鈥渇oreseeable future鈥�.

Candler said as 87% of the price was fixed, the risk of further inflation for that portion of the contract had transferred to main contractor Bovis Lend Lease. Subcontractors have yet to be hired.

Source

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