Road Capital Renewal Program Revised to Reflect Current Market Conditi
Published on 14 October 2026
Southern Grampians Shire Council has endorsed a revised 2026/27 Road Renewal Program to ensure planned road works can be delivered within budget amid ongoing pressure on fuel and construction costs.
At the time the 2026/27 Budget was adopted, uncertainty around oil prices and subsequently supply chain costs for road construction materials, including diesel, quarry products and bitumen, prompted Council to consider a range of delivery options for the Road Renewal Program.
To ensure informed decision-making, three program scenarios based on low, medium and high-cost assumptions were presented to Council. The medium-cost scenario was adopted, with a commitment to review the program before construction commenced.
Following that review, current market conditions show construction costs remain elevated and are tracking in line with the high-cost scenario.
Southern Grampians Shire Council Mayor Dennis Heslin said the endorsement of the revised program will ensure Council can deliver critical road renewal works while remaining financially responsible.
"When Council adopted the budget, we knew there was significant uncertainty around construction costs and committed to reviewing the program once market conditions became clearer," Cr Heslin said.
"This revised program allows us to respond to those realities while continuing to invest in safer, more reliable roads for our communities across the Southern Grampians.”
Changes to the revised program are as follows:
Removal
- Final Seal - Mill Road (this was completed in the 2025/26 program)
- Heavy Patch - Young Street (identified as a Department of Transport and Planning responsibility)
- Balkins Road, Ballarat Road and Tennyson Street (to be addressed through maintenance operational budgets)
Addition
- Resheet - Balmoral Cemetery Road (recent weather events have significantly deteriorated this section of road)
- Heavy Patching - Petschels Lane intersection with Mount Napier Road (significant recent pavement deterioration has been detected)
- Reseal - Thompson Street (Gray to French Street. The Lonsdale to Gray Street section will be completed in 2027/2028 following Wannon Water’s completion of watermain renewal works)
Deferred
- Heavy Patch - Louth Swamp Road (rehabilitation required)
- Heavy Patch - Morven Road (rehabilitation required)
- Renewal (widening) - Wills Street, Dunkeld
- Reseal - Featherstonhaugh Road
“The revised program remains within Council's adopted budget of $6.78 million and aligns with the Long-Term Financial Plan,” concluded Cr Heslin.
A full list of upcoming road works can be found on Council’s website Roads & Infrastructure | Southern Grampians Shire Council