Ballarat Airport runway costs jump up over $1 million

A $1.631 million variation was submitted to the council by Fulton Hogan Industries, who were given the contract in August 2022 for $5.4 million.

The increase came from three issues, firstly the rock under the runway wasn't suitable and works to combat this cost $875,112, secondly an access road needed to be constructed costing $404,248 and added costs to fencing, runway lighting and additional drainage had an added cost of $352,146.

The project still comes under budget as a safeguard had been put into place of $2.3 million.

One councillor welcomed the "transparent" approach to the cost changes but called out the usability of the airport.

Council chief executive Evan King said any variations of the tendered budget more than 20 per cent needed to go to the council chambers.

"The variations have already incurred," he said.

"This part of our policy to report back to council.

"We knew there was likely to be some issues with the subsurface and but we weren't completely aware of the complete extent of them to the end, so we built the meeting to the contract, you would have paid for them regardless."

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Councillor Daniel Moloney noted this way was "a far better, more admirable, transparent way of doing business."

"Thank you to the team for being transparent about this approach," he said.

Cr Moloney however still noted the significance of the sum.

"It's ratepayers money on a pipedream that will eventually turn into something commercially viable," he said.

Cr Moloney said it was a "very costly exercise for a small number of businesses currently who benefit" and its future to be viable was a "promise."

Mr King explained the contingency fund was in place for the "worst case scenario".

"It's not going above budget, it's still under budget," he said.

The project is jointly funded with $5 million from the council and a $3.83 million federal grant.

Councillor Ben Taylor said as a joint venture, the council had "coughed up the lion's share."

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