Already $7 million into its public safety building replacement project, Esquimalt faces another big jump in the projected budget.
In February 2021, project consultants provided an estimated budget of $42 million for all aspects of the project. The estimate went up $6 million by June 2022, and after tenders were issued last December, the construction manager presented the township with an unexpected budget of $62.2 million.
“This is a difficult situation, however, the reality is that costs continue to rise and we need to make decisions based on the most recent information available,” Mayor Barbara Desjardins said in a news release.
Township staff sought a second opinion that confirmed the number.
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The increase is attributed to the higher costs seen regionally. In recent years the Island construction market has seen annual escalation rates of 10 per cent per year. Typical annual rates are two to five per cent, according to the township.
Just under $7 million of the budget has been spent so far on the temporary police facility, removal of the old building, construction of the temporary fire hall and design work and consultant fees.
While the township has submitted grant applications where possible, there is no significant contribution in progress to contribute to funding, staff said.
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“Council is confident in the budgeting work done so far. Staff have sought expert advice from construction professionals and local industry experts in all phases of the process. We need to ensure the community’s safety is maintained while balancing prudent spending,” Desjardins said.
Council, meeting as committee of the whole, on Monday (May 8) will see a report on the project status including a presentation by the project manager.
Find the meeting schedule, agenda, contact information and how to participate online at esquimalt.ca.
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