Whanganui’s Sarjeant Gallery redevelopment could face delay after subcontractors go into liquidation

Two subcontractors working on the Sarjeant Gallery redevelopment have been liquidated. Photo / Bevan Conley

Progress on the Sarjeant Gallery redevelopment has taken a hit following the liquidation of two subcontractors.

The structural steel company folded in March, followed by heating, ventilation and air conditioning (HVAC) in April.

A report to the Whanganui District Council from project manager Gaye Batty says the main contractor (McMillan & Lockwood) has engaged a local supplier to complete the steelwork and the option to directly engage redundant staff is being worked through for HVAC.

Batty told the council’s operations and performance committee that both liquidations were “entirely unexpected”.

The question of a potential shift in completion date (currently December this year) had been put to the main contractor.

“Their focus has been to simply get another sub-trade onboard and get them bedded in. That’s [gone] really well with the steel contractor,” Batty said.

“However, our concern with regard to the HVAC is I think real, given that it is on a critical path and so many of the other services trades need to work around that.”

Batty said her gut feeling was there would likely be a delay.

“In a couple of months, I would say, we’ll have more of a firm programme.”

Batty’s report says the mid-range cost estimate for the finished project is $67,873,049, with $65,501,466 currently committed.

Ratepayers are expected to contribute $14.6 million, up from $5 million in 2015.

Council chief executive David Langford said the council had budgeted on the mid-range figure for its annual plan.

“From my point of view, I think the [Sarjeant] team is doing a really good job in terms of managing the ongoing risk,” he said.

“We are still working very actively with the [Sarjeant Gallery] Trust. They are putting a lot of effort into fundraising for us, and we’ve seen recently the large sums of money bequeathed to both the council and the trust from estates.

“We’ve had Better Off [central government] funding. All of those things will be reducing the ratepayers’ contribution towards this project.”

Meanwhile, Batty said local proprietors were already showing interest in the gallery’s cafe space.

Gaye Batty, project director for the Sarjeant Gallery redevelopment. Photo / Bevan Conley

Whoever moved in would start with a shell.

“They’ll have all services provided, but it’s up to them to come in and put in their own counter and tables and chairs etc,” Batty said.

The cafe would be a ‘warm and serve’ operation rather than a full restaurant-style cooking facility.

“It was very clear from the start that we didn’t want a big vat and deep fryers and a full restaurant-style cooking facility.

“There is a small kitchen under the old gallery where there is room to store dry goods and fridge and freezer facilities.

“We didn’t want fatty smelly food smells within the gallery. It also has an implication on insurance and all sorts of other things.”