Cupar Care Village project hit by rising costs as total bill hiked to over £15m

Fife Council Cabinet Committee signed off another price hike to build the village and supported housing development at a meeting this week.

The project is meant to replace the town’s ageing Northeden House care home, but costs have increased by 60.5% in the past five years. The price has risen by approximately £1.6 million since November. It will be built on the site of the Dalgairn Centre on Bank Street, and will include a 24-bed care home, 12 supported living flats for independent living, and community support accommodation.

It was originally expected to cost £9.8 million. By November 2023, the figure had skyrocketed by more than £4 million. Now, the cost has increased again.

“Unfortunately, due to the [construction] market and the cost of materials, we again have a shortfall of £1.6 million,” a council officer told the committee.

A committee report explained that the latest increase is due to a “delay with the project starting and price inflation” in addition to a number of “specific issues within the construction industry”.

More specifically, councillors were told that mechanical and electrical installations have increased along with the cost of new technology heat pumps. Cost pressures related to joinery and window systems have played a part as well.

According to the report, there are also a “limited number of contractors operating in the market at present” - which is pushing up the price of construction. “Getting competitive tenders is very difficult and we must also be very careful that we are vigilant of contractors going into liquidation, as happened at Methil,” it stated.

Councillors were warned that the rising costs will impact on other projects, leading to a reduced budget for Anstruther Care Home’s replacement project.

“I’m saddened and a bit disappointed to hear of even more delays,” said Councillor Fiona Corps (Lib-Dem for East Neuk and Landward). “Since I was elected, I was led to believe that the care home in Anstruther would actually be up and running by now. Here we are in the middle of 2024 and I don't believe there’s even any plans proposed. I’m just looking for some reassurance that we can find this money that has now been put into Cupar and that Anstruther doesn’t suffer.”

Council officers and Labour members alike were quick to assure Cllr Corps that there are no plans to alter the plans for Anstruther as a result of increased costs at Cupar.

Council leader David Ross said there is still “a commitment to carry out” the Anstruther care home replacement.

Councillor Altany Craik (Labour for Glenrothes West and Kinglassie) added: “Our commitment to replacing the care homes is a political choice. It’s something we’ve been on top of since 2012 since I was elected - replacing Glenrothes, Methil and so on. [Ansturther] is part of that programme and that’s not going to change.”

The total cost of the Cupar project is split between Fife Health & Social Care (64%) and housing services (36%). The latest £1.6 million shortfall will be divided between the two - approximately £1 million of which will be met from the overall Care Home replacement budget.