Collyhurst is one of the early stages of the £4bn Victoria North. Credit: via planning documents

Cost of Collyhurst regen rises on inflation 

Manchester City Council said the cost of the project has gone up by £6.6m, prompting a change in approach to procurement. 

Place North West reported last July that Lovell Partnerships had been selected as the preferred contractor for the 274-home Collyhurst project, being delivered by the city council and Far East Consortium. 

However, Lovell told Place it is no longer involved in the scheme. 

The contractor failed to agree a way forward with the joint venture partners after Lovell’s final tender for the job “significantly exceeded the original cost plan”, according to a report to Manchester City Council’s executive. 

“Accordingly, an alternative procurement route has been followed in order to secure best value for the JV partners”, the report added. 

A new contractor is yet to be appointed. 

The regeneration of Collyhurst forms one of the early stages of the £4bn Victoria North masterplan. 

Last year, Manchester City Council signed off a budget of £31.2m to deliver 130 new-build properties at Collyhurst South and Collyhurst Village, as well as paying for associated public realm, the relocation of existing tenants and the construction of phase one of a new community park. 

Since then, the cost of the project has increased by £6.6m due to “ongoing inflationary pressures in the construction market”, the city council said. 

As a result, the council’s budget for Collyhurst has been revised upwards to £37.9m. 

“This project is not immune to the significant inflationary pressure that the whole construction sector is currently experiencing,” said Cllr Gavin White, Manchester City Council’s executive member for housing and development. 

“The report to the city council’s executive seeks approval for an increase in budget ahead of the arrangements for the delivery of the scheme being finalised.” 

White added: “The regeneration of Collyhurst is a key part of the first phase of investment in the Victoria North initiative that will deliver 274 new properties – 130 of which will be new social rent homes – helping to meet huge demand for quality housing in the city.” 

Your Comments

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They’ll be relieved, now they have an excuse to not build it.

By Dan

= using cheaper materials

By Levelling Up Manager

Grow up Dan……that kind of comment discredits you and more importantly that site . I’m surprised PNW publishes this kind of unsubstantiated nonsense

By Noshow

Educate us then, why is this so far behind already?

By Noshow

With Manchester’s acute housing shortage and rents spiralling upwards I hope the council take this opportunity to substantially increase the density of this site to provide more homes.

By Anonymous

I think there is a clue in the article Noshow 11-35

By Noshow10.16

Increase of over 21% due to inflation, which is typically around 10%. Yes, the construction market has experienced “unusual” price increases, but it looks like Lovell were very clever in getting to preferred contractor stage, and then tried to drive far too much margin into the cost plan, making it unpalatable for the Council.

By Anon

The price of everything goes up. Cheap and cheerful council projects often cost more in the end as I believe some councils may have discovered

By Holy God

So it looks like the land will be left empty for a long time then like the rest of colyhurst along that road just patches of grass

By Hi local

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