Upgrades at the Holbrook sports ground worth nearly $2 million have hit "significant" problems early into the development.
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A report to be presented at a council meeting on Wednesday notes soft spots at the site will add significantly cost to the project.
The report notes that "significant soft spots" in the ground were unearthed after the demolition of the existing change rooms and bar.
"It would appear that the stormwater drainage from the demolished building has not been working effectively and has been trapped underneath the building," council staff note.
Machinery was used to remove 851 tonnes of earth with 676 tonnes of material returned in a bid to fix the problem, but the $25,357 measure failed and the soft spots returned.
The builder, Gilchrist Property Group, told council staff the best way forward was to increase the depth of footings, which would add another $39,407 to the cost.
A monthly update will now be presented to councillors given the concerns about the project.
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The report notes "every effort" would be made to contain the overall cost of the project, but additional funding will likely be needed.
"There is little scope to defer aspects of the build with the exception of the cool room in the bar," staff note.
"Other funding opportunities for discrete aspects of the project can be explored however at this stage of the build it is unlikely.
"It is clear that the multipurpose function room and catering facilities project is going to be very challenging to complete reasonably within budget parameters, however every effort will be made to minimise cost overruns where possible."
There is also a plan to upgrade the facilities at the Henty sports ground.
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