The upgrade of Newcastle Ocean Baths has hit a snag with the original walls needing to be replaced due to structural issues at a cost of almost $1.3 million.
City of Newcastle had signalled its intention to retain the pool walls as part of works that began in March to upgrade the pools, promenades and pump system.
Community engagement and heritage assessments showed a preference for maintaining the original aesthetic of the site and investigations even found the walls were in "reasonable condition", the council said.
But after construction started, the walls were "found to be structurally inadequate to meet the upgrade's intended 50-year lifespan and therefore a full replacement of the walls is underway".
Council said the cost to replace the walls is $1.29 million, with the latest contract variation listing the project value at $15,707,867.
Council voted to accept a contract for the works from Daracon in October last year for $12,456,681 excluding GST. In February, just before work was about to commence, council cited the project cost to be $14.5 million.
Of further concern is that cracks are already visible in the concrete that has been poured on the sides of the ocean pool.
Numerous deep cracks can be seen stretching along the wall on the back of the pool and are visible from outside the construction site.
Friends of Newcastle Ocean Baths president Peter Wickham said he held concerns about the cracks and had reached out to the Newcastle Ocean Baths team for an explanation, but had received no reply.
However a City of Newcastle spokesperson said the cracks are "superficial" and do "not present any concerns relating to the durability of the walls".
The council spokesperson said despite the setbacks, the project remained on track to open in mid-2023 - ahead of the 2023/24 summer season.
The project has been funded through $9.5 million recovered from the sale of council's Fred Ash building along with $3 million from the NSW Government's Public Spaces Legacy Program.
Stakeholder engagement for stage two of the upgrade, which involves the pavilion and surrounding public areas, is expected to start "in the coming months".
It comes after a nearby seaside project has also faced significant delays and costs.
The Herald reported in August the price of the Bathers Way at South Newcastle Beach project was $4.5 million more than when the project was announced.