City Reduces Paving Plan by 13%
By 250 News
The City of Prince George has had to scale back it's paving plans for 2007 because of rising costs.
The plan had called for 19.3 kilometers to be paved this season but the increased costs mean that in order to come in within budget, that will be scaled back to 16.7 kilometers, cutting 2.6 kilometers from the plan, a reduction of 13%.
Columbia Bitulithic has landed the three year contract with the City of Prince George for paving. The submitted the lowest tendered amount for the coming year of projects, $2,981,207.32
City staff have already met with the paving company to ensure Columbia will comply with current Ministry of Environment emission requirements which were detailed in the tender document.
The new rate reflects an overall increase in paving costs of 66%. Staff outline the following reasons for the increase:
1. the upgrades at the plant to meet emission targets meant a 9.5% increase for the purchase of the product over 2004 prices.
2. hauling costs are up 22% since the contract in 2004
3.The cost of liquid oil is up approximately 30%
4. Aggregate materials have increased by 47%
5. Utility costs such as electricity and gas needed for the production process have increased 55%
6. Contractor collective agreement costs are up by 15% over last year’s contract.
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