Cost estimates for a new Wattle Range Council building are well over budget and have soared due to increased labour and materials expenses.

The council is looking to replace its ageing shed at its depot at Railway Terrace at Beachport.

Engineering services director Peter Halton said in a report to council that he had received two tenders.

He said one was non-conforming due to no internal fit-out and the other was well over the allocated budget amount.

Mr Halton said both tenders were to be stripped back and compared without the fit-out to decide on the preferred supplier.

“Then we can negotiate what can be completed regarding internal fit-out to meet budget requirements,” Mr Halton said.

“The budget of $275,000 set in 2021/22 may be limiting our scope due to recent price increases in steel and labour costs.

“The bare shed cost alone is $200,000 and estimated fit-out is up to $250,000.”

Meanwhile, Mr Halton has also reported on council’s proposed multi-million-dollar office in Millicent.

He said the landscape request for quotation for detailed design was listed on the SA Tenders website and closed on December 5.

“Workstation layout and seating details for all employees by department is now being finalised by the management team,” he said.

“These details are required for final detail design drawings and are important for power and communication requirements for each workstation.

“An expression of interest is being prepared for the total supply and fit out of office furniture.”