The Redevelopment of Grattan Square in Dungarvan cost €2.1 million more than expected, it has emerged.
According to the Local Government Audit Report which will be presented to Waterford councillors at the Plenary Council meeting on Thursday, the initial tender for the work came in at €1.23 million.
However the work cost €3.3 million.
Waterford Council Chief Executive Michael Walsh told the auditor the additional costs were due to “Unforeseen obstacles and delays encountered during construction, and with the difficulty in keeping the business centre of Dungarvan fully serviced and operational during the works. It is apparent that the work was underestimated by the contractor and that the pre-contract surveys failed to identify the existence of significant underground services. Under the current form of public works contract these deficiencies leave the local authority exposed to substantial claims”.
Councillor for the area Seamus O’Donnell said he was concerned the cost overrun would have a negative impact on funding for roads.
Cllr O’Donnell also said the works had had a negative impact on businesses in the area:
“Several business people complained to me day in day out we have to keep the door closed the dust was coming in, and overall they lost quite a lot of money and as well as that they had to pay rates for that particular year and I remember saying at one council meeting that I always thought (the contractor) should pay for the rates.”