Work to build new schools, nurseries and social housing in Aberdeen could be paused indefinitely – or abandoned – next week.
Construction sites across Aberdeen could be shut down as council chiefs try to claw back overspending on projects including Union Terrace Gardens and P&J Live.
With foundations already laid, the site of the new Tillydrone Primary School is likely to be mothballed for months while a new contractor is found to build it at a price the council can afford.
That’s after the proposed price of the school increased by more than a third – nearly £10m.
Council accountants have come up with a plan to balance the books, scouring budgets for potential savings.
Soaring costs caused by global events have left bosses scrambling to save millions in the local authority’s capital projects.
Covid, Brexit, skill shortages, 30-year-high inflation rates across the world and the war in Ukraine have been blamed for the current woes, which otherwise might force the local authority to mothball facilities and hike prices.
Cost of major Aberdeen construction projects up millions
Rebalanced council books show the costs of flagship projects of the previous council leadership have jumped by millions.
Over the next five years, the ongoing work to UTG is expected to cost an additional £1.5m – taking the grand total to very nearly £30m.
The £400m replacement exhibition centre, Teca, has gone up by another £2m.
An ongoing court case over the cost of the refurbishment of Aberdeen Art Gallery is adding further uncertainty to the Town House ledger.
Meanwhile, the troubled refresh of the city’s schools is going to cost significantly more too.
Milltimber’s new primary is thought to now cost an extra £690,000, while the Countesswells School has soared £1.6m.
But it is in Tillydrone, where foundations have already been laid for a new primary school, that the uncertainty has hit hardest.
Prices for the new Riverbank school – which will feature a sports pitch, outdoor classroom and sensory garden – have rocketed by more than a third, up £9.9m to £36.2m.
What will it mean?
Council resources director Steve Whyte said the outstanding work on the new Tillydrone primary has been priced, but was pitched “significantly over budget”.
School rolls show there is still space at schools in the area, so he is recommending the council go back to the market to haggle for a better price.
A spokeswoman for Riverbank Parent Council said it was “extremely disappointing” construction had stopped.
“The community has had no communication about the decision to stop building nor what the likely timescale for the school will be going forward,” she added.
The hold-up is expected to add at least four to six months to the project, sparking a chain reaction throughout Donside.
Tillydrone is being built as a replacement for the existing Riverbank School.
And when its pupils make the move, their old building will be refurbished as a replacement for St Peter’s RC Primary.
On the other side of the city, plans to build more nursery space at St Joseph’s RC Primary could be scrapped.
Council chiefs say there is “no identified need” for it.
Council house building could be halted
Much-publicised work on building hundreds of new council homes could also be put on hold.
Building sites at Craighill, Kincorth, Tillydrone and Kaimhill could be shut down “at the next most appropriate milestone”.
In a report put together for councillors, Mr Whyte said it would be “prudent”.
“It is considered that the current cost proposals are not delivering best value,” he added.
During that break, officials would look at ways of cutting costs, perhaps sourcing different materials and contractors, or rejigging how many houses will be built at a time.
What other major projects in Aberdeen could face upheaval?
A new link road through Pitfodels – previously ruled out when the SNP and Lib Dems took over the council – has now officially been cancelled, pocketing £5m.
Costs of the replacement mortuary at Foresterhill are expected to be re-examined, along with a new Bridge of Don recycling centre and Dyce Library.
But all three will go ahead, with millions in funding secured from the government to help with the cost.
There remains doubt over the feasibility of rolling out free school meals for primary six and seven pupils.
Council chiefs claim £11m in funding is still due from Scottish ministers to pay for the extra catering facilities.
Major Aberdeen roads projects spared from the chopping block
Officials are desperate to get spades in the ground on the Berryden Corridor improvement scheme – so they are not suggesting any change to its funding.
There is also no suggestion for change for the planned hydrogen hub and £157m city centre and beach masterplans.
Meanwhile “priority” upgrades to the B999 Shielhill junction in Bridge of Don are still proposed for the next financial year.
Eager to avoid a lengthy and potentially costly compulsory purchase order fight, the council has bought up other lands to speed up the process.
And the extension for Bucksburn Academy – due to go overcapacity in this coming school year – will not face any upheaval either.
Councillors will vote on the proposals next week, as well hearing about the risk to £20m in funding for the planned Aberdeen market:
Conversation