North Sydney pool rebuild to exceed $100m, as costs and delays blow out

The revamp of North Sydney Olympic Pool is expected to pass $100 million, nearly double the original estimate, as the local council concedes the iconic harbourside site may not reopen until 2025.

On Monday North Sydney councillors will consider taking out a $20 million loan to help fund the upgrade to the 87-year-old pool, months after defects were uncovered in a steel structure that contractors had to pull down last year.

The North Sydney Olympic Pool redevelopment has been troubled by cost blowouts, delays, heritage concerns and controversy over a federal government grants scheme.Credit: James Brickwood

Mayor Zoe Baker, a strident critic of the former administration’s handling of the redevelopment, said the additional $20 million was shocking.

“But it is unsurprising. These are the ongoing financial impacts of poor decision-making by the previous council,” she said.

The project has been characterised by ballooning costs, protracted delays, and controversies stemming from its scale and design, and concerns about destruction of heritage.

The pool closed in February 2021, when the revamp was predicted to cost $58 million, and originally due to be finished in late 2022.

In November, the council revealed a steel roof frame for the 25-metre indoor pool had to be pulled down due to a “significant” design and construction problem.

A project update for February’s council meeting said the disassembled steel could not be reused, which had caused delays. The extent of the delays were still being assessed; however, it was estimated the additional wait “could extend completion of construction to late 2024/early 2025”.

“Council staff, project managers, and council’s construction contractor are working on strategies to expedite the time between practical completion and pool opening,” the update said.

The council anticipated an extra $20 million would be required for the project this financial year. It would need to take out a loan for those funds given its financial position, the report said.

Defects found in a steel structure that is part of the pool redevelopment are being blamed for the most recent delays.Credit: Wolter Peeters

The report said the council had worked through 70 of 136 extension-of-time claims for the redevelopment, and approved more than $4 million in variations for the project since November.

“While considerable progress has been made, a high quantum of variations and extensions of
time remain to be agreed, and both parties are working within the provisions of the contract
to resolve these matters. These claims relate to cost and delay regarding design changes
following the award of the construction tender.“

The council has budgeted $86 million for the project, but an independent report by consultants PwC predicted the final cost would be at least $89 million, $31 million more than the original estimate.

Baker said the loan would push the cost of the project to between $105 million and $110 million.

Signs outside the pool say the “world’s most beautiful pool is becoming Sydney’s best aquatic centre”. But it won’t be happening anytime soon. Credit: Rhett Wyman

She would not be drawn on whether the council would curb spending in other areas, but said it would have the price hike “in mind as we consider next year’s budget”.

“We’re going to need to have a really honest conversation with our community about the long-term plan for the council,” she said.

In 2020 the council signed a contract with construction company Icon, which built the cracked Opal Tower at Sydney Olympic Park, to build the complex designed by Brewster Hjorth Architects.

An independent report by consultants PwC last year criticised its decision to have separate design and construction contracts for the project.

Councillor Jilly Gibson, who was mayor when the redevelopment was approved, defended the previous council’s handling of the contracts and suggested Baker should “take responsibility for the delays and blowouts”.

“We forget the pool was failing and was going to have to close down, it had concrete cancer. If we had separate design and construct contracts it would have delayed the start of construction.”

Baker said it was “time the councillors responsible for these decisions took more accountability”.

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