BONNYVILLE – The rehabilitation of Lakeshore Drive and Pontiac Park is going ahead, even though the cost came in a bit higher than the Town of Bonnyville was expecting.
Brad Trimble, general manager of public works and utilities for the municipality, explained the estimate they received from their engineers for the project had the price tag sitting at $1.2 million.
“The total expected price for the project is estimated to be $1.6 million, which is about $418,000 over budget,” he told council during their June 8 meeting.
Council passed a motion to award the project to E-Construction Ltd., with the balance to be pulled from the general capital reserve. The estimated completion date is Sept. 30.
According to Trimble, the road was originally constructed in 1974 and has “multiple breaks every year.” Those instances have had negative impacts on the 200-metres of the road over the years.
The scope of this rehabilitation will go from the intersection at 49 St. to about the 43 Ave. and 48 St. Intersection. The roads, storm drains, sewer and water systems, and intersections are included in the scope of work.
When asked why the price had come in over the estimated costs, Trimble explained there were a few factors behind that.
“It seems silly, but there was a Texas weather event that affected the cost of pipes and things like that. Things have changed a little bit and it appears that underground contractors are busier than what we expected when this whole (estimate) was done. That also reflects in the prices.”
Trimble added, “I think it reflects the market. I think underground contractors are busier, but... it’s two per cent higher than what was (estimated).”
CAO Bill Rogers described the increase in costs as a trend the municipality has been seeing across the board when it comes to work being done. One example he gave was the storm drainage the town tendered out for 52 Ave., which came in so high the decision was made to re-tender the project in hopes of getting a better price at a future date.
When it came to the Lakeshore Drive and Pontiac Park rehabilitation project, Rogers said administration recommended council approve it due to all the issues that have happened in the area despite the costs.
“This particular project, although higher than what the opinion of the probable cost was from our engineers, is an area that we’re not certain we’ll get a better price next year. Indeed, the underground guys seem to be busy this year, so they’re not giving us good deals,” he detailed. “Some of the other tenders we did get came in lower than the probable costs, but in the case of the underground, they came in more expensive. This area is a particularly bad one. We've had a lot of problems, a lot of water breaks and things like that.”
Taking everything into consideration, Coun. Brian McEvoy was in favour of awarding the contract to E-Construction.
“We have had others come in lower and save money on other ones. We’re going to spend a little bit more here, and I really don’t have an issue with approving this one.”
