Rising costs could see the Grant District Council’s Mount Gambier District Livestock Exchange 2030 Transformation Project increase to $15m.


At council’s September monthly meeting on Monday, chief executive Darryl Whicker revealed the company tendered to complete the project was holding a 5% increase on its quoted price.


Mossop Constructions + Interiors was awarded the tender to upgrade the facilities.


“We met with Mossop and they are holding a 5% increase in terms of escalation, which for council would amount to a $300,000 increase,” Mr Whicker said.


“That would mean the project becomes a $14.7m project. Probably with contingencies around $15m.


“There would be an additional $30,000 for the CITB Levy, which was always going to have to be paid by council.


“For clarity, council’s contribution would represent around 32% of the overall cost. The remaining 68% is shared.”


Last month council received confirmation the State Government reaffirmed its $2.7m funding commitment for the project – subject to council securing matching Commonwealth funding.


“With council and state funding secured, delivery of the project is currently pending acquiring the balance of funding to deliver the project,” Mr Whicker said.


“Written feedback received from the Growing Regions Program team highlighted several strengths in the application and praised the clear and convincing response to sections, and raised potential areas for improvement.


“Following discussion at the Saleyards Strategic Committee the project team have met with consultants who have specialty experience in environmental and Indigenous cultural matters and a track record of Federal Government grant successes.


“Furthermore, the CEO and Saleyards Manager met with Mossop to ensure awareness of the tight timeframes available for the grant submission and re-engage the established partnership on this project.”


A recommendation was put to elected members to seek reaffirmation and commitment from Mossop to the project costs and confirmation of any pricing changes.


The recommendation had the full support of the elected members present at the meeting.


Elected members also agreed to approve lodgment of a grant submission in round two of the government’s Growing Regions Program.


However, this would be subject to the quoted price being within acceptable budget tolerance.


“The quoted project price representing a good value proposition, maintaining viability and feasibility, to the satisfaction of the CEO and Corporate and Community director, as an indicator the project shall not materially differ in price and or scope,” the councillors said.


“However, where the price or scope is deemed to materially differ a special meeting is to be held seeking council’s congruence to lodge the grant submission.


“If council is not comfortable to commit, a special meeting where we can present the updated price.”


Mr Whicker informed council of the contract timeframe and the impending date to lodge the grant application.


“We are on very tight contract timeframe, and six weeks to lodge the grant application,” he said.


Council has until October 10 to submit its application.


“We have been negotiating prices, taking in feedback and making changes, which we are very ready and able to complete,” Mr Whicker said.


“We have arranged a project team that has been meeting twice a week to make sure we achieve that.


“We need to get council’s congruence to lodge the application.”


In January 2024, council applied for $7m through the two stage Growing Regions Program for the Mount Gambier Districts Livestock Exchange 2030 Transformation Project.


In May Mr Whicker was notified the major project had not secured funding.


Since then, council has reevaluated the future of the Saleyards Transformation Project following the unsuccessful funding bid.


“The Saleyards Strategy Committee, council staff and stakeholders have put a significant amount of work into this Transformation Project over the last four years,” Mr Whicker said.


The Saleyards Transformation project envisages upgrading the facility to modern infrastructure with cattle yard roofing, holding pen reconfigurations, soft flooring, sprinkler systems and rainwater harvesting.


This work has been identified as a priority in the Mount Gambier and District Saleyards Masterplan 2018-2028.


Council increased its financial contribution to $4.3m to allow for the project to be completed in its entirety when paired with the State Government’s commitment of $2.7m and a successful Federal Government funding application.


“There is an election expected. We hope that it is assessed prior to the election, which was why our application was unable to be assessed last time – because of the change of government,” Mr Whicker said.


Council is hoping to get its upgrade of the saleyards back on track with the aid of unspent expenses to assist with the Growing Regions application.


At the recent monthly meeting, elected members agreed to the Mount Gambier and District Saleyards Strategy Committee recommendation that council carry over $84,509 in unspent preliminary expenses to assist with the application.