By Colin MacGillivray

The State Government has hit back at opposition claims about escalating costs on a list of public projects – including three in Horsham.

Shadow Finance Minister Jess Wilson last week said more than 100 government-funded education, health, community safety and infrastructure projects had seen cost increases in the past year due to the private sector’s ‘reluctance to accept price volatility risk in public sector contract’.

Among the projects listed by Ms Wilson were the replacement of a Horsham glasshouse, which had a listed cost escalation of $6,351,407; a security upgrade at Horsham Magistrates Court, with a listed cost escalation of  $1,506,210; and a fit out for Family Safety Victoria’s Orange Door family violence support program, with a listed cost escalation of $385,000.

Ms Wilson accused the government’s Big Build infrastructure program for contributing to price increases across the construction sector.

“Whether it’s building the North East Link or delivering a minor office refurb, Labor cannot manage projects and Victorians are paying the price,” she said.

“This new blowout guide is an admission that Labor cannot manage money and has lost control of delivery of projects of all sizes.” 

But an Agriculture Victoria spokesperson said the glasshouse project – the most expensive of the three listed Horsham projects – was incorrectly labelled a cost escalation because the initial scope of the project had changed.

The spokesperson said the original contract involved construction of a single glasshouse, but the contract was altered to build a second glasshouse.

“This project by the Victorian government, with funding support from the Grains Research and Development Corporation, was delivered on budget,” the spokesperson said.

“It had expanded from the original planned single glasshouse to two glasshouses due to changing requirements. The process of managing construction variations was followed to the total approval value, including contingencies.”

A Department of Government Services spokesperson said variation in the Horsham Magistrates Court project was also due to changes to the project’s scope.

She said some cost overruns to other projects were partially attributable to global supply-chain challenges in the wake of the COVID-19 pandemic.

“All Victorian government accommodation projects include a rigorous scoping exercise and the development of a detailed project brief,” she said.

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