Rising Costs Can Another Project

By 250 News

For the third time in a year, we are hearing about a project that has exceeded its planned budget before the project even gets off the ground.

The first was the project to twin the Simon Fraser Bridge.  The original budget was $32.5 million but the lowest bid for the design build project was $15 million over that mark.  That project has been split into a design project first, then  build, in hopes of increasing the competition for the build portion and bringing in a lower price tag.

Then there was the case of the underpass that will link the Strathcona neighbourhood with Carrie Jane Gray Park.  The budget for that Heritage River Trails project was $550 thousand, the initial bids came back at more than twice that amount, and while the project was revised, the final bids came in at just under a million dollars.

The latest project to exceed the proposed budget is the addition of a 6 bed care unit to the Houston Health Centre.  The budget on that one was $1.8 million dollars, but the actual cost has doubled, so the whole project is now on hold.

In the Houston case, the reasons for the hike in costs have been listed as an extremely active construction market, higher costs related to the small size of the project, extra costs associated with  geo-technical  and civil engineering work, consultant fees  and fees for equipment and furniture.

So what is it that sends a planned project into the red before any sod is turned?  There is a myriad of reasons says Prince George Construction Association President Rosalind Thorn “There may have been a case where the project was designed by someone in the lower mainland who is not as familiar with the northern needs, it may have been a case where the plans were drawn up several years ago and construction costs have escalated since the initial design was put together.”

Thorn says there is also a price to be paid if the project isn’t specific “If  the project is vague, and is not specific on the materials or the design,  then a contractor is  forced to  make a guess on what it might  cost,  so  if the details aren’t there,  then  there will be a higher price.”

The reasons behind the increased costs won’t help those who had hoped to see the expansion of the Houston Health Centre’s facilities for seniors.  Northern Health says it understands the community will be disappointed, and it is looking for ways to address the needs of seniors in that community.

Rowena Holoien, Northern Health chief operating officer for the Northwest Health Services Delivery Area says the seniors care 6 bed project and the new 24-7 service were designed to work together, “While we aren’t going ahead with the seniors’ beds at this time, I want to assure the community that the 24-7 project is definitely continuing and we look forward to having it up and running very soon.”

The 24-7 service is expected to begin later this year.

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