Downtown pool project now $2.8m over budget – Prince George Daily News

0

Construction of the new downtown pool is now $2.8 million over budget, according to a report presented to council on Monday.

The city council will decide whether to approve the updated budget, which means borrowing more money for the project, which now has a total cost of $39.126 million.

Approximately two-thirds ($1.7 million) of these costs are directly or indirectly attributed to steel primer deficiency, according to the report. As reported to the board last July (cost estimate $1 million at that time), following the delivery of structural components to the job site, it was determined that the primer was specified in error and would require significant remediation work. The city is looking compensation to reduce the overall primer remediation cost overrun.

The $1.7 million awarded to the steel primer defect includes primer correction costs incurred to date, plus a contingencies for potential future expenditures, including cost recovery. This total is subject to a possible righting action.

The remaining $1.1 million in cost overruns are largely attributable to external hardware or labor cost
escalations for items such as lumber, audio visual equipment, paint and signage, and contingencies conditions such as unsuitable floors and existing piping under pool tanks.

Initial cost estimates for the project date back to 2017. Since then, with the impact of the
pandemic and labor shortages, construction costs have increased dramatically.

City administration recommends change to replacement of Four Seasons Leisure Pool
Project budget with an addition of $2,876,000, which will be financed by the proceeds of the debt of the DEA under the
already approved loan authorization by-law #8888. This brings the total borrowings to $28,376
million out of the approved potential loan of $35 million.

Construction is currently 84% complete and $28.3 million has been spent. Expected construction completion remains late summer 2022 with occupancy to follow in fall 2022.


Source link

Share.

Comments are closed.