Cost of new Eastwood Park leisure centre and theatre increases by £1.9m

An extra £1.9m is needed to deliver a new leisure centre and theatre in Eastwood Park.

A £55.7m budget had previously been agreed for the project, which is expected to be completed in autumn 2027.

However, that has now increased to £58.5m due to “market volatility and ongoing inflation for some construction materials”, according to a report to councillors.

Officials at East Renfrewshire Council asked councillors to agree to the new funding plan at a meeting on Wednesday.

In late 2022, councillors agreed to scale back their plans and delay the project for two years as a result of rising inflation and volatile interest rates, which had pushed the price up to around £67m.

Then, in December 2023, they agreed to proceed with a £59.3m option. Cost-cutting work was planned to bring the price within the agreed £55.7m budget.

Officials report £900,000 can be secured from East Renfrewshire Culture and Leisure Trust and sportscotland, but an additional £1.9m is needed.

They say over the past two years the project team has “worked hard to realise the savings required to deliver the project within the allocated budget”.

“This work has been undertaken against continued uncertainty linked to worldwide events that has seen construction-related inflation remaining volatile and difficult to predict,” the report adds.

A cost update in June and market testing found that the “project estimate was above the budget included within the capital plan”.

“The project team continued to review the detailed design, and additional cost savings were included before the end of the full market testing process,” the report continues.

“However, there are limited options remaining, and it is not envisaged that the project will be able to be delivered for the current budget of £56.6m.

“The cost increase is being attributed to current market conditions in Scotland through a limited supply chain nationally for the mechanical and electrical elements; to continued market volatility and ongoing inflation for some construction materials.”

Hub West Scotland Ltd has been appointed as the private sector development partner for the delivery of the project, with BAM Construction acting as the main design and build contractor.

If approval is secured, the council is set to agree the final terms of a contract for the work this month, subject to “the cost being no greater than £58.5m”.

In the report, officials add: “The preferred option agreed in December 2023 was estimated to cost £59.3m. At that stage it was noted that the budget may vary from this figure due to construction inflation, however, the project has been achieved for less than was estimated.

“Whilst the final budget requirements are more than the current provision within the capital programme, funding of £1.7m has been secured from external sources including developer contributions, the leisure trust and sportsscotland, to assist with meeting the cost of the new facility and reducing the additional funding contribution now sought from the council to allow the project to proceed.”

Plans for the new leisure centre and theatre, which will see the existing building knocked down and a replacement created, were approved in February.

Previous plans had been approved in 2022, but the council later decided to scale back the project. The new scheme includes an eight-lane 25 metre swimming pool, a smaller 17 metre training pool and a four-court games hall.

There will also be changing rooms, fitness and spin studios and a cafe, while the theatre will include a 364-seat auditorium and stage, a smaller studio theatre, dressing rooms and bar and lounge areas.

Construction of the new complex is due to begin in November, with the new building opening in autumn 2027. The existing building will be demolished once the new facility opens.

Enabling works have already started to “reduce the risk of any delays to construction of the new building starting on time”.

The report states: “The development of a new Eastwood leisure and theatre facility to serve East Renfrewshire residents and its visitors has been a long-held ambition of the council.

“It was delayed by Covid and the significant impact of inflationary pressures. Despite these setbacks, the desire to deliver for residents has remained, and the project is ready to progress to contractual commitments and the build stage.”