TOTAL costs for the controversial Visual Arts Facility have shot up again, with the current price tag expected to reach more than £28million.

The revelation emerged on the same day it was announced the building itself, on the site of Colchester’s former bus station, is due to be completed next week.

Final tests are taking place this week and next, to find out if the shell of the building can withstand the elements.

If so, work can start in the autumn to fit out the interior of the Vaf, with an opening date for the long-awaited arts centre tentatively set for next summer.

Paul Smith, Colchester councillor responsible for the Vaf, praised project managers Mace for completing the first phase of the building on time, and slightly under budget.

Mr Smith confirmed the overall cost of the Vaf was now estimated at £28.6million, up from the original price tag of £16.5million. But he stressed the council and the other funders hoped to cut millions off the final cost by recouping money through legal actions.

A long-running battle with Banner Holdings, the company originally hired to build the Vaf, has ended after the Technology and Construction Court threw its claims out.

Chesterfield-based Banner went into administration last month, and it is understood the case was thrown out after administrators Bell Advisory failed to pay a sum Banner owed the court.

Mr Smith said he was confident a £1.4million bond held by a third party would soon be returned to the council, reducing the overall cost of the Vaf.

He said: “It means their £2.1million claims against the council have gone by default.

“Because we won an adjudication ruling saying we were justified in firing them, there should be no further delay in paying out that bond to the council.”

The £1.4million will cover the £1.1million extra contributed by the council to complete the Vaf, plus more than £300,000 in legal costs.

But Mr Smith said he doubted if the Arts Council and Essex County Council would get much return from the £1.5million extra both recently invested.

He said: “We have lodged claims for over £4million of costs relating to Banner. From what we have seen of Banner’s financial position, we don’t think the company will have much in the way of assets to pay its creditors, so everybody will only get a small percentage of what is owed.”

The funders could recoup more money if Colchester Council is successful in a planned legal action against Turner and Townsend, the managing agents on the project.

No legal action has begun, and it is not known how much is being claimed from the firm, which advised the council until being dropped last year.