Council debates contract for over-budget pound development

COUNCILLORS debated over choosing a contractor $60,000 more than the lowest bidder for Gladstone's over-budget pound development in their general meeting on Tuesday.

Consultancy GHD evaluated the three tenderers for $136,000, measuring their merits on criteria including locality, previous performance and cost.

"The risk in using the lowest tender is it may not be completed on time," director of planning and environment Leisa Dowling said.

The project is $260,000 over original costings, totalling about $1.43 million.

Councillor Col Chapman questioned why council's development contributions of $43,820 were not considered in the budget.

It's a similar scenario to the Gladstone Entertainment Centre's cost blow-out of $2 million.

"Infrastructure charges are an internal charge within council, it is moving money around internally," council CEO Stuart Randle said.

"It's an accounting charge. But it is something we should take into account in the early stages of projects.

"There's been a change in our internal process."