It鈥檚 costing the City of West 麻豆精选 an additional $408,000 to finish work connected to the Shannon Lake-Bartley-Stevens roundabout.
The work includes a pedestrian/cycling path to Highway 97 down Bartley Road, and a sanitary sewer pipe to the public works building. The original budget was done in Sept. 2021 and came in at $400,000. The contractor came back to the city months later indicating construction costs are significantly higher in 2022, including increased fuel prices, a doubling of asphalt oil costs, and general inflation affecting the price of construction materials.
The cost to complete that portion of the project is now estimated at $808,000.
Coun. Doug Findlater questioned staff if council would see an escalation of costs with other city projects.
鈥淭his could be huge,鈥� said Findlater. 鈥淚t freaks me right out that we鈥檙e seeing these increases and we鈥檝e got so much on the go. We鈥檙e spread out so thin.鈥�
Staff responded that projects are designed with the ability to reduce their scope, and also contain a contingency and escalation component.
鈥淭hose three things working together, we鈥檙e trying to minimize those impacts, but those costs are very real,鈥� said Paul Gipps, city administrative officer.
The entire project will now cost just over $7 million, with the additional $408,000 coming from development cost charges and capital reserves.
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@GaryBarnes109
gary.barnes@kelownacapnews.com
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