The cost of Leicester’s £48m theatre project is at risk of going up yet again, the city’s council has admitted. Turner and Townsend is the project’s QS.

The cost of the Rafael Viñoly-designed building has already spiralled from £26m to £48m. Now the price tag could get bigger again due to rising materials costs.

Mike Candler, cultural quarter project director at Leicester City Council, said 87% of the £48m contract price was fixed. This leaves 13% or £6.25m at the mercy of market fluctuations. “We understand that materials could rise by up to 20% in the next two years,” said Candler. A 20% increase on £6.25m would add a further £1.25m to the overall project cost.

The Construction Products Association said manufacturers were “facing enormous increases in energy costs” and significant hikes in the prices of raw materials. It warned this would continue for the “foreseeable future”.

Candler said as 87% of the price was fixed, the risk of further inflation for that portion of the contract had transferred to main contractor Bovis Lend Lease. Subcontractors have yet to be hired.

Source

QS News