Karoonda East Murray council are reviewing road project costs

The costs for a project to re-sheet Pilchera Bore Road and Lee Road are currently being reviewed after Karoonda East Murrray council reported some potential “incorrect allocation of costs.”

A council report suggested this is due to associated re-sheeting work completed on Rads Lane and Hobby Pit Road, which was included in the project “actuals” for both Pilchera Bore and Lee Road. 

Work on the project began December 2017.

Council’s chief executive officer Matthew Morgan said Pilchera Bore Road is one road in council’s network of approximately 1200 kilometres of unsealed roads.  

“As reported to council, the budgeted cost of the project was $646,000 and at the end of April the actual cost incurred was $529,000. As works on Hobby Road and Rads Lane were added to the scope of the project after the budget was set, the costs are currently being reviewed and excluded from the project cost, and will be treated as a separate project as part of council’s budget review process,” he said. 

Mr Morgan said the reason the project has had several days is mainly due to factors beyond the control of council including machinery and plant failure and other expected downtime.

“Additional resources have been allocated to the project, to bring down the expected completion timeframe (pending environmental factors) back to early August 2018,” he said.

“There is approximately nine kilometres of road remaining to be re-sheeted. 

“With the reallocation of costs and the effective project management of the remainder of the project, it is anticipated that the project will come in only slightly over budget.”