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(Announcement by City of Edinburgh Council)
In a report due to be heard later this month, Council officials outline the revised cost for the Usher Hall project and the preferred construction programme, which will deliver the Hall, on time, in winter 2008.
Phase II of the refurbishment of the Usher Hall includes the upgrading of the backstage areas for performers, a dedicated education space and a new glass wing on Grindlay Street, housing a new box office area, café bar and office accommodation. The new facilities represent the ‘tool kit’ that world-class concert halls require in the 21st Century.
Councillors will decide on one of four options for the future of the Phase II redevelopment of the iconic concert hall, which include abandoning the project altogether or the preferred option which will see the Hall closed outwith the 2007 and 2008 Festivals, but reopening to the public partially in September 2008 and completely at the end of 2008.
The complexity of the work required on the Grade A listed building, the current state of the construction market, including inflationary pressures, and the initial delays to the start of the project have meant that the total project cost is now £19,064,223, which is a £6,351,469 increase since it was last reported to Council in 2004.
The additional funds required for the project to continue are proposed to be made available through the reassessment of the Council’s Capital Investment Programme and from within the current Department of Culture and Leisure capital budget.
Once Phase II is complete, the total sum that will have been spent on the Usher Hall, including Phase I and the organ refurbishment, will be close to £30m. This is a significant investment in the long-term future of the Hall, assuring its position as one of the finest music venues in Europe.
The existing Phase II funding package is £12,712,754 of which £5.35m is from the Council, and includes external funding from: Heritage Lottery Fund (£1m), Scottish Arts Council (£2.9m), City Growth Fund (£2m), SEE&L (£1.35m) and public fundraising (£600,000).
In order to deliver the project on time, in December 2008, the report recommends councillors choose Option B, which is the full scheme of planned works for the refurbishment at the least additional cost, to be carried out in an 86-week construction period from April 2007. Near full capacity of the Usher Hall would be maintained in the first five months, allowing the 2007 Edinburgh International Festival to go ahead as normal. The Hall would then close and re-open for Festival 2008. Work would resume after the 2008 Festival and the Hall would be open for business while the final work packages are completed to the new wing. The project would be completed by December 2008.
The Director of Culture and Leisure considers this the best option for continuing with Phase II of the Usher Hall refurbishment as it maintains all elements of the works, while allowing the Hall to remain open until the conclusion of the 2007 Festival. However, it will impact on key users of the Hall, such as the Royal Scottish National Orchestra (RSNO) and the Scottish Chamber Orchestra (SCO), who would have to perform elsewhere for a season. The Council is currently discussing arrangements with the RSNO and SCO to find a temporary base for their concert seasons.
Factors contributing to project cost increase:
Construction market
The major pressure on the cost increase has been recent changes in the construction market; including the high number of construction projects being undertaken now and in the near future, the subsequent demand for contractors, as well as the widely recognised issue of higher than expected construction industry inflationary increases.
The latter is demonstrated in the tender returns received across the board for the Main Structural work, Metalwork, Mechanical and Electrical Services, Fit-out and Drainage Diversion works packages, all being substantially over budget.
Complexity of work
The Council’s principal contractor, Heery, and quantity surveyor, Gleeds, consider that the volatile nature of the subcontractor market and the complexity of the Phase II project, mean that it is unattractive to the subcontractor market and tender prices are reflecting this.
The programme and the design and the cost plan are being constantly reviewed to ensure best value at every step. Savings are being identified where possible, including c.£800,000 saved through a design change that also substantially reduced the risk inherent in excavating underneath a Grade A listed building.
Delay
The original programme for the main construction works was scheduled to start in January 2006 and be complete by December 2008. The current anticipated start of the Phase II works is April 2007.
Delays arose from public objections received to both the necessary Stopping Up Order (SUO) and the Traffic Regulation Order (TRO), required to carry out the work on the new wing. City Development officials held the view that the objections related almost exclusively to the removal of the through-route around the Usher Hall by means of the TRO, rather than to the proposed extension of the Hall. Following further consultation, all of the objections to the SUO have recently been withdrawn, thus allowing the building work on the Hall to go ahead. The roadway around the Usher Hall will largely remain unchanged following completion of the Phase II works.
However, Gleeds (QS) has advised that the change in schedule from the original project start date of January 2006 to a project start of April 2007, has attracted an inflationary effect on the costs of 34.5%, compared to the 15% originally allowed for.
RSNO Chief Executive Simon Woods said, "We have known about the proposed closure of the Usher Hall next season for a number of weeks. Whilst it clearly poses some significant challenges to us in the short term, we are nonetheless thoroughly supportive of the Usher Hall renovation process.
"The Usher Hall is one of the world's great venues for orchestral music, and at the end of this process, it will have 21st century facilities to match the quality of the acoustics. This will be of incalculable benefit to the people of Edinburgh. In the meantime, we are working with the Usher Hall management and Edinburgh City Council to find alternative accommodation which will enable Edinburgh audiences to continue to hear Scotland's national orchestra throughout the 2007-8 season. I am confident that we will arrive at a very workable solution."
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