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An Otago Regional Council report released yesterday provided updates for the $4.4million Great King St project.
The overspend was largely due to ``unforeseen ground conditions and underground structures'', the report said.
The completion date is still set for November 20, although it could change depending on the outcome of a water main replacement investigation and work.
Last week the Dunedin City Council said the Great King and St Andrew St intersection would be closed temporarily because contractors found a water main outside Dunedin's Central police station was closer to the kerb than expected.
Both councils were working to replace the mains so they would not cause future disruption.
They were also investigating whether it would result in any delay or added cost.
The city council would cover extra costs if necessary.
The first pavers have been laid at the intersection and work will accelerate once below-ground works are complete.
The proposal includes 10 bus bays, electronic timetables, public toilets, bike stands and new plantings.