Questions as Orkney library costs soar to four times original budget

Council initially budgeted £122,000 for the works - they're now estimated to cost over four times that, at £506,000.

The cost of work at Orkney Library & Archive has been questioned after they rose to more than four times their original budget.

Efforts to improve heating by installing new LED light fittings and insulation started with a budget of £122,000 but are expected to rise to just over four times that, at £506,000.

The costs were featured in a report given to Orkney Islands Council‘s Asset Management sub-committee.

The report states that the original scope of the works has increased, with more work needed to increase the air tightness and thermal efficiency of the Kirkwall building.

The report also says the bulk of the cost increases have come from an increase in materials price.

New LED fittings are specifically pointed to as having increased costs around the project.

The work being undertaken will mean a renewable heat source can replace aging oil-fired boilers.

Work began in August last year and is said to be proceeding well.

However, these works have meant an allocated budget of £172,000 will fall significantly short of a new estimate of £506,000.

This caused councillor Steven Heddle some concern.

He pointed out that the £172,000 budget was already a revised budget of £122,000 for the project.

“It seems excessive”, he said, “three times the cost of the revised budget and four times the cost of the original budget.

“My question is: how did we get here?

“How’s it so much more expensive?

“What was the process that allowed us to spend this much? Has it gone through the committees?”

Answering his question was the council’s head of property, asset management, and facilities Kenny Macpherson.

Mr Macpherson agreed that “it doesn’t make for happy reading”.

He explained that the tender had come back “much further in excess of the expected budget”.

However, in terms of the specifics of the decision-making process, he would have to look into it, he said.

Councillor Heddle then asked if the asset management sub-committee could be briefed when answers did come to light.

He asked for there to be “a reminder” of what delegated exceptions there are for this kind of project.

He also asked for it to be clarified at which point they should come back to the committee level.

The details of the project state that lights inset into the library‘s roof will be replaced with LED fittings.

There will also be a new plasterboard ceiling which will have insulation installed in it. It’s estimated that this work will be completed in November.

These details were included in a report updating the sub-committee on improvements being carried out at council-owned buildings within the financial year up to the end of June.