An upgrade of the Central Otago District Council's Alexandra offices has gone $350,000 over budget and will now cost more than $1 million.
But the project still represented value for money and was long overdue and needed, councillors said at yesterday's council waste and property committee meeting in Alexandra.
The five-stage refurbishment of the William Fraser Building was initially estimated to cost $760,000, although council staff realised before the end of stage two it would go over budget, council property and facilities manager Mike Kerr said.
The main reason for the overspend was unforeseen changes to structural engineering designs after demolition of internal walls.
Other factors were the building code requiring an upgrade to a type 4 fire alarm and increased emergency lighting throughout the building; replacement of poor wiring found upon demolition and additional power and data points installed due to layout changes; and an unforeseen upgrade required to the building's switchboards, as they are at capacity and coming to the end of their life.
Stage three of the refurbishment is under way and the entire project is expected to be completed by November this year.
It is now estimated to cost $1,082,647.
The extra funding will come from the council's William Fraser office reconfiguration project ($321,822) and district furniture budget ($35,000).
But the project had still been done in the ''most cost-effective manner'' possible and the upgrade was needed, committee chairman Nigel McKinlay said.
''It's the first major upgrade in 30 years and staff should be congratulated on what they have achieved.''
The council acquired the William Fraser Building just after the 1989 local government amalgamations.
The finance area was refurbished in 2012-13 and the council chambers in 2015-16 but the rest of the building has been mostly unrenovated.
The project, which included a reconfiguration of some areas, would provide a ''modern, effective office environment that would alleviate current staff congestion and fragmentation'', council chief executive Sanchia Jacobs said last year.
The refurbishment would also provide for any future growth required by increased development and population growth, she said.
