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+ NEWS day, July 6, 2023 2 SIXTEEN MILE 3 PROJECT TO COST 4$16.5M MORE THAN # EXPECTED DAVID LE) dlea@metroland.com The Town of Oakville will be paying $16.5 million more than expected for the building of the Sixteen Mile Community Centre and Li- rary. The rising budget was discussed during a Mon- , ol meet- ing during which the town's community services com- missioner Coll Bell blamed the costi inerease on anumber of factors includ- ing market instability, la- bour shortages, resourcing issues, supply chain issues and historically high infla- tion. “The impact of this in- stability has resulted in construction projects, par- ticularly high-dollar on struction projects, bein; quoted at grossly higher amounts," said Bell in a re- port to council. "Since the start of the COVID-19 pan- demic, the construction in- dustry has experienced rapidly accelerating cost escalations a unprece- dented rates. Building ma- terial prices have quadru- pled in some markets and are now up by 35.6 per cent overall." The Sixteen Mile Com- munity Centre and Library project had an approved ever, Bell noted that when the project went to tender the lowest bid the town re- ceived for the build was around $74.8 million. As a result, the project oo == COMMUNITY CENTRE AND LIBRARY COSTS ESCALATING Town of Oakville image Concept art for the future Sixteen Mile Community Centre and Library. shortfall is $17.4 million be- fore some value engineer- ivings are taken into acount, which town staff say will save approximate- ly $1 million. "A concerning trend af- fecting Individuals Must the construction market is the availability of contractors. Construction projects are receiving few- er bid submissions than in pre-pandemic times," said Bell in the report. "In a typ- ical market, the size of the Sixteen Mile project would have received at least 10 to 15 bid submissions. This project received only five bids and only two met the established technical threshold. Receiving fewer bids often leads to a less competitive process as you must select from the limit- ed number! ibmission: rather than a tae compe- tition pool." Town staff also noted that the sports park associ- ated with the Sixteen Mile project will cost an extra $2.2 million to correct off- site stormwater manage- ment deficiencies that could impact the park once completed. This increase raises the park component of the pro- ject from its approved 2023 budget of approximately $15.6 million to about $17.8 million. Ward 4 Councillor Allan Elgar asked if town staff were surprised by the 28 per cent increase to the cost of the community centre and library. Bell noted the increase did not come as a surprise since comparable projects in Mississauga and Guelph were also hit by extreme price hikes. "What we tried to do as much as possible is, nat each stage of the pro we tried to build} in risk mi tion and e diligence to ensure we on done every- thing we possibly could to keep the costs as lowas pos- sible while delivering the best possible facility for our See COST, page 23 BEFORE AFTER Are you 40+, 50+ or wiser? In perimenopause or in menopause and struggling with hormonal symptoms, low energy, poor sleep and weight gain? Payroll, HST including Tax Amnesty, & Reassessments Tax Audit, & Appeal CRA Collection Instalment Taxpayer Relief and Fairness Rroblems 48 lbs weight loss in 8 months Book a FREE discovery call at BEFORE AFTER www.dkwellness.ca and learn what hormone balancing nutrition can do for you! Ying Yang Chartered Professic Accountant Member of Canadian Tax Foundation (647) 989-1276 y) @ yangaccounting. ca 50 day transformation Daphne Kostova, CNP, NNCP une eae etna Usa Certified Holistic Nutrition CALL NOW 416-602-3196 daphne@dkwellness.ca \ YAW AWAS | Aue) I latsSctRoxe Bf MK in] Resolution For an affordable solution to your Busi Make idual tax diffic n Appointment Today for ential Consultation insidehalton.com