A PROJECT to replace an aging Southern Downs Regional Council water main that supplies water to one of Warwick's biggest employers has blown its budget by almost $100,000.

Fearing the risk of a water main fault shutting down the John Dee Abattoir, the council approved the Golf Links Water Main project at a cost of $320,000.

A report presented to the Southern Downs Regional Council revealed the project's cost had blown out by $95,000, highlighting costs to bore under the railway track near the Glennie Intersection and a greater than expected amount of rock as major issues.

The over-budget project has frustrated councillors ahead of the council's tight and controverisal impending budget.

Deputy Mayor Cr Ross Bartley was critical of the way the project had been costed, and said he would like to see a vast improvement in project costings.

"Everyone knows it's a sandstone rise to the Golf Club - you can certainly see it's rocky and hilly," he said.

"You need to lift the game in costing these jobs.

"We've got to be real about it - we can't just guess."

As result of the budget blowout, the council will take $95,000 of its plant budget - shelving plans to purchase a new $161,000 roller.

Cr Bartley described the budget reallocation as 'robbing Peter to pay Paul'.

"It's got to be taken from somewhere else, that means something else has to be put off," he said.

"We're heading towards our annual budget and there's not much room for error.

"Normally we don't see blowouts as exessive as this - some go under and some go over."

Cr Jamie Mackenzie described the budget blowout as "unacceptable" and called on the council to change the way it budgets for projects.

"Council needs to change its budget processes so that, before any money is spent on capital works, a proper estimate is prepared and approved even if it is by independent engineers," he said.

"Then the works can come in on budget whether done by council or by contractors with appropriate clauses in the terms of engagement."

It's estimated the cost to bore under the railway track alone would be $50,000.

The Deputy Mayor said the costing problem reflected issues with management.

"I'm not saying it's the staff's fault - it just need to be managed better.

"The whole organisation needs to be managed better.

"If contractors were going to go for the job they'd do competitive full estimates - maybe we should follow a similar system."

There were many strong views across the council table when the report was presented to the general meeting last month.

Director of Engineering Peter See said he understood that it was frustrating when projects went over-budget.

"Until you approve a capital works project there's no soil testing or undergound testing done," he said.

"The only way to counter that is to change our laws on long-term capital projects."

The project was given priority by the council after an assessment of the aging water main found a number of potential problems.

One of the council's gravest fears was the main would fail during a major kill at the John Dee Abattoir, putting the business and hundereds of jobs at risk.

Golf Links Water Main Project

•  Replacing aging water main that supplies water to John Dee Abattoir
•  Projected cost was originally $320,000
•  Budget has blown out by $95,000
•  Cost to bore under railway track $50,000 more than expected