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Engineers slammed for high-priced Kincardine landfill project By Liz Dadson |
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The Kincardine public works department says a grossly-inaccurate original engineer's estimate has resulted in some cost-cutting to proceed with the new Ward 2 (Armow) landfill site. In committee-of-the-whole last night (April 20), public works manager Jim O'Rourke and deputy mayor Anne Eadie, policy chairperson, explained what happened and why the tender for the new waste management centre came in at almost double the estimated cost. The original estimate by Conestoga Rovers and Associates, from last November, for Phase 1 (the waste management centre), was $688,500, including capital cost of $621,000 and contingency of $67,500, said O'Rourke. So, that was the amount budgeted. Then, the day before the tenders were to come in (March 24), the engineers revised the estimate to $1.534-million, including $1,434,350 in capital cost and $100,000 for a contingency cost. Phase 2 (cell construction) was estimated at about $600,000, including $531,000 in capital and $65,000 for contingency, based on April figures. O'Rourke said those figures have been revised to $824,791 for capital and $82,479, for a total of more than $900,000. The original estimate for Phase 1 and 2, plus engineering of $172,900, came to $1.457-million. The revised estimate, with engineering costs of $176,000, amounts to $2.617-million. Tenders for the cell construction are due May 20. "We were very displeased at that point," said O'Rourke. Once the tenders were opened, Harold Sutherland Construction was the lowest bid at $1.14-million, said O'Rourke. After much negotiation, the public works department has been able to cut Phase 1 back to a construction cost of $775,000, and Conestoga Rovers reduced the total engineering fees for the entire project to $143,000. However, O'Rourke said, there is no contingency fund on this project. The value of the engineering fees are the contingency allowance, if required. The balance will then be paid to the engineers. O'Rourke said project management will be shared between him and Jim Yardley of Conestoga Rovers. The engineers are to confirm in writing to the municipality that the proposed changes to the approved design of the project do not violate the municipality's Certificate of Approval with the Ontario Ministry of the Environment. With the Phase 1 tender awarded, Sutherland can begin work in May, said O'Rourke. It is hoped that when Phase 2 tenders close on May 20, that project can be awarded by June 1 and construction done during the summer, so the new waste management centre can open in September. Referring to the engineer's estimate, councillor Ron Coristine asked if it was a "free" estimate?
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O'Rourke
said it was included in the engineering cost. "We had to take some
buildings out of the waste recovery section (to cut costs)," he said, "and we deleted
the maintenance shop. The project is functional." "We spent a lot of time trying to make the numbers work," said Eadie. "Why would there be such a gross discrepancy (in the figures) in a four-month period?" asked councillor Candy Hewitt. "It was the engineers," said Eadie. "It was the way the tenders went out." She stressed that neither the public works department nor the contractor was at fault for the high tender bids that resulted. "So, the engineering report was truly askew?" asked Hewitt. "We asked for final estimates two weeks before the tenders came in," said O'Rourke. "The engineers said the scope of the project changed in 2010 which accounted for the difference in the figures. But that's not accurate. It's the same project that was set out in 2009. So, that excuse just doesn't cut it. There was a mistake there, for the estimates to be off 100 per cent. It's not acceptable." "It's astounding that there would be such a discrepancy," said Coristine. "Thanks to (deputy mayor) Anne (Eadie) and (public works manager) Jim (O'Rourke) for bringing this project back within something reasonable and acceptable." "I discovered both Jim (O'Rourke) and I can be very stubborn in negotiations," said Eadie. "And one thing we told the engineers is that we want this project on time and on budget." Council accepted the report. Scrolling stops when you move your mouse inside the scroll area. You can click on the ads for more
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