THUNDER BAY – Over the past 17 years the city has issued $477 million in infrastructure contracts, which have come in $6.4 million under budget.
Thunder Bay city council on Monday night received a report from administration, outlining the construction contract summary from 2001 to 2017.
“It’s genesis several years ago was simply to address perception of what we budget and what we pay at the end, that we always paid more,” city clerk John Hannam said of the report.
Coun. Aldo Ruberto said the projects with complications or delays are the ones that usually get the most attention.
“The only reports we get in front of council are usually contracts that go over budget. Every time someone goes over budget, they come before council and it looks like every contract is over budget because we don’t hear about the ones that are under budget,” Ruberto said.
“This analysis says we are on top of things, are trying to do the best job possible and trying to be as frugal as possible while still keeping the quality.”
Coun. Rebecca Johnson was concerned about the lack of specific details for each individual projects, specifically whether timelines were met or if the scope of projects are modified to meet the budgets.
“There’s often work that is carried into the following year if for whatever reason the contract isn’t completed in one season,” city engineering director Kayla Dixon said. “That would not necessarily be captured here because the full project at this time has been completed, whether it was paid for over two years or a single year.”
Dixon said the original budgeted amount is often a preliminary estimate, with later detailed design planning providing a more accurate number.
“What engineering is looking to do is trying to get ahead of the curve where we have more contracts and more work that is designed so we have those estimates available when budgets start,” Dixon said.
“It’s a bit of a process for us but it’s something we’re focused on getting done.”
The summary does not include final costs from many of the contracts awarded last year, which are still regarded as in progress.
For one of those, council voted to approve a $491,000 contract extension to Crescent Avenue reconstruction and Empress Avenue storm relief, which includes additional storm sewer construction within the entrance to George Burke Park that was originally part of the scope of work last year but was removed at the time of the original tender award to meet budget constraints.
As well, Dixon said any additional costs for the High Street wall project have not been determined. That project was extended into 2018 after an explosion halted activity at the construction site for several weeks last year.
“We are expecting some costs associated with the delays from the explosion,” Dixon said. “It is the work that we are completing and the requirements the contractor had to follow to get the work completed fall on us.”
