Ratepayers will pay an extra $4.6 million over the original estimate for upgrades to the ageing building, after previously unscoped works were added to the bill, including 'mechanical upgrade of services, a new roof, and upgrades for the lift, as well as electrical and fire service.'

The project will now cost almost $7 million, with a state government input to that sum of just $500,000.

Councillors unanimously voted to approve the further costs, with councillor Moloney saying while the failure of reckoning was "really disappointing", it gave the new City of Ballarat executive team the opportunity to come into chambers openly and transparently and deal with the problem.

To that end, a new project management office will be established within council to take over the running of major design enterprises, which have proved contentious in recent years with several projects only revealed to be running majorly over budget after media investigation.

Cr Moloney said internal levels of scrutiny on council projects in recent times had been lacking and potential expenditure had not been fully scoped, with council officers failing to provide complete transparency on costs.

"I think it's something that absolutely should be very clear and transparent, not just to councillors, but to all ratepayers, because this is a project that affects us all" Cr Moloney said.

"I'm strongly of the view we need to continue our improvements in project management not just on the library, but across the board. That includes due diligence: understanding the full likely costs, as well as the various scoping stages available to us. I don't want us to be presented with a single 'stage one option'; I'm keen to understand the full scoping of a project so we go in with an informed decision."

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Former mayor John Barnes gave a tentative welcome to the idea of a separate project management unit within council's offices, saying it had been tried once before under the aegis of former CEO Anthony Schink.

Mr Barnes said the urge to win government money sometimes led council to make illogical decisions, with poorly thought-through projects not properly assessed or amortised.

The library project was controversial from the start, with Ballarat architecture firms telling The Courier they saw the budget as 'grossly insufficient' from the inception, and expressing anger at council's decision handing the project to a Sydney firm rather than a local practice.

The original EOI for the library refurbishment describes the job as a 'competition'.

"The City of Ballarat is conducting an Expression of Interest process including a design competition component for the design of a new entrance and significant refurbishment works of the Ballarat Library.

"Three architects / interior design consultant team respondents will be requested to provide services for the development of a concept design and interior design scheme for the Ballarat Library Refurbishment, for a fixed fee, together with a tender for the detailed design and delivery of contractor tender documents."

The EOI also acknowledges library car parking spaces will fall and fees will rise as a result of the Gov Hub development, which will have "a serious impact on the use of the facility."

The Courier understands a rift existed within council, with some executives and councillors arguing for a more 'sophisticated' look by using a big name firm, while others felt a local approach would be appreciated.

It's also understood the winning bid undercut local architectural firms by a significant amount.

Cr Moloney hopes the decreasing number of confidential items on council's agendas is a sign of change.

"I don't think any organisation will ever go through a project problem-free. But when problems and issues are identified, they need to be fully and transparently disclosed," the mayor said

"And we did that at the council meeting last night. So for instance, we were given options of not going ahead at all, just to knock the project on the head.

"We were also given a couple of different staging options so we could spread the financial risk over a few years. In the end we chose to get on and do the full project, knowing the additional cost components and what the additional costs would be.

"And I would rather go through that process, even though it might seem not a good look to do that publicly. But I think it's a worse look if it's not done in open council chambers.

"I think in the past too much would have just been discussed as 'contract variations in confidential business'. But we've now gone a few meetings without any confidential business items. And that, to me is a sign of change. And people will only trust that when they can see that for themselves. What it might mean is some of the things being discussed will be pretty open and frank. I think that's the way forward for us."

The last redevelopment plan for the library was created in 2013. Called the Ballarat Library and Community Hub Design Report, it was a far more ambitious plan:

It is anticipated that this redevelopment project will cost in the order of $18.5 million for construction of building alterations and additions, associated site works, fit out and loose furniture, professional and statutory fees and car park allocation for 120 replacement spaces. This cost is exclusive of GST, escalation, RFID sorter and IT equipment, and works associated with hazardous materials and contaminated soils. (Ballarat Library and Community Hub Design Report, Likely Order of Costs, page 5)

Nothing was to come of it.

The Courier put a series of questions to City of Ballarat regarding the cost overrun on the library project and received the following responses:

How did council get the costings so wrong?

The initial quantity survey of the original scope provided an estimate for the cost of the project. The concept design process including mechanical, and services investigation identified a range of works and inclusions required to be added to the scope.

How was the extra scope needed for the project established?

The additional scope was identified through the concept design process with Studio Hollenstein.

Who flagged it?

City of Ballarat Project Officers working alongside Studio Hollenstein architects flagged the additional scope required.

Are there any concerns the designer may just be looking for extra resources to do a fancier project?

No

What exactly are the problems with the roof?

It needs replacing to address leaks and to support the planned renovations and upgrades to plant and equipment.

Is a roof check-up not part of routine maintenance, and why was it not flagged much earlier?

Routine maintenance on the building has been undertaken as required, however, the engineering report recommended a full upgrade of the roof as part of the project.

What has the $240,000 'already spent in the design process' delivered?

Architect fees, inclusive of sub consultants, building surveyors, engineering reports and project management.

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