Tamworth Regional Council is calling on the NSW and Australian governments to help bridge a funding shortfall for the Aquatic, Health and Education Centre of Excellence after the project’s estimated cost increased to $68.3 million.
The revised cost follows an extensive Early Contractor Involvement (ECI) process, with value management measures already incorporated into the design to reduce costs without affecting the facility’s functionality.
“The increase is attributed to a number of elements, with the majority beyond the control of the project such as our regional location, general construction cost escalations, specialist contractor availability, and even the ongoing conflict in the Middle East,” said Tamworth Region Mayor Russell Webb.
Council endorsed the then-$45 million project in 2024, supported by a $15 million NSW Government commitment. In May 2025, the Australian Government committed a further $9 million, reducing Council’s contribution to $21 million.
With the project now estimated to cost $68.3 million, Council said it is prepared to increase its contribution to $33 million but cannot fund the remaining gap without additional government support.
“The previous Council was willing to commit up to $30 million, and we believe we can fund up to $33 million, but we just cannot go any higher than that and be financially secure,” said Webb.
Council said its contribution to the Aquatic Centre cannot be redirected from other infrastructure projects, while existing state and federal funding agreements require the completed facility to meet the criteria for a Centre of Excellence.
Cost-saving measures have already been adopted, including changes to façade materials, replacing the concrete pool shell with a modular alternative, reducing the size of the plant room, converting the kitchen and gym to cold shell spaces for future tenant fit-outs, narrowing corridor widths and reducing landscaping.
“This cost increase is exactly why Council staff recommended the Early Contractor Involvement procurement model, as we’ve been able to identify these cost increases now before significant work has taken place,” said Tamworth Regional Council General Manager Paul Bennett.
“The scale of the market escalation we have seen in the last few years was completely unexpected. From 2019 – 2021 we saw annual escalations on the Eastern Seaboard average 3-3.8 per cent. In 2022 this rose to 8 per cent, and has stayed elevated well above that 3 per cent level ever since. This latest cost includes contractors adding 12.5 per cent escalation based purely on the uncertainty from the conflict in the Middle East.
“Our current aquatic facilities, like so many across the country, are at end of life after serving the community for nearly 90 years. We have heard the community’s calls for a year-round aquatic centre that will meet the needs of our growing region, but we also need all levels of Government step up so that we can deliver this long awaited project,” said Bennett.
Project timeline
2022 – Council approved a feasibility study and business case with a total project cost of $61 million, including a Council contribution of $16 million. Funding applications were submitted in December 2022 based on construction commencing in February 2024.
February 2023 – The NSW Government committed $15 million through the Office for Sport NSW Centre of Excellence Infrastructure Grants.
2023 – Council consulted on and implemented a Special Rate Variation, freezing its commitment to major capital projects.
2024 – An application was submitted under Round 2 of the Australian Government’s Growing Regions Program seeking $9 million, based on a revised project cost of $45 million.
January 2025 – The Australian Government committed $9 million to the project.
September 2025 – Council entered into an Early Contractor Involvement agreement with Richard Crookes Constructions following a competitive tender process.
October 2025 – Revised cost estimates from Richard Crookes Constructions increased the forecast project cost to $57 million. Value management measures that maintained the facility’s functionality and protected state and federal funding eligibility were incorporated.
March 2026 – Council received a fixed-price contract of $68.3 million, creating a funding shortfall that Council says cannot be met without additional support from the NSW and Australian governments.
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