GUELPH/ERAMOSA – A recent tender for a culvert project here has highlighted greater concern for remaining within budget as material costs continue to rise with inflation.
At a March 7 meeting, Guelph/Eramosa council accepted the tender of Jarlian Construction Inc. Limited in the amount of $327,574 (including tax) for the rehabilitation of two box culverts along 4th Line, between Highway 7 and Wellington County 124.
The project was included in the 2022 capital budget with a total project value of $290,000, including engineering.
Prepared by public works director Harry Niemi, the report noted the project consists of concrete patching and waterproofing of the structures as well as provisional guide rails and end treatments.
“It’s a bit of a specialized project, it’s not a typical removal and replacement; the rehab is sort of a specialized concrete work,” Niemi explained.
Five bids were received prior to closing on Feb. 24. The township’s consultant, R.J. Burnside and Associates, reviewed the tenders for completeness and accuracy.
Based on their review, Burnside recommended the low tender submitted by Jarlian Construction. However, with the provisional items, the report noted completion of the full tender scope would exceed the approved budget.
One caveat
“The one caveat here on the financial impact is that the budgeted price was exceeded with the full tender but is noted in the background, there was a substantial item that was marked as provisional which is basically the roadside safety where those two structures currently don’t have guide rail or post and wire or anything there,” Niemi explained.
“It’s something that, through the bridge inspections, are identified as an opportunity for improvement when these structures are rehabilitated just because it’s a bit of a safety issue.”
The report also noted provisional items are not integral to the rehabilitation of the structures and could be deferred to 2023.
Niemi noted if he removed provisional items, the total project costs, including engineering, would come in under budget.
Councillor Bruce Dickieson said it makes more sense to complete the project all at once.
“To me, as long as it’s not going to blow the budget, why not do it when you’re at it and be done with it?” Dickieson said.
Councillor Corey Woods agreed, noting “our sole purpose being here is to take care of the roads and the bridges.
“My preference would be, if we’re going to do a bridge or a road, to do it right,” he added. “I would hate to see that being cut to save money.”
Mayor Chris White also advocated for provisional items this year, noting guide rails are a safety feature.
“I recognize we’re going over budget and we have to look at that,” White acknowledged. “But that’s an issue, frankly, we’re going to be looking at this whole year in every department.
“At the end of the day … we’re going to be looking at probably different areas and adjusting the budget and making decisions as ‘yes, it’s up 20 per cent because of inflation, but it makes sense to do the full job,’” he added.
Unknowns
White said although there are unknowns, it’s important the township get moving on construction projects this year with inflation and competition.
Council voted to move ahead with the project, including provisional items, with the added cost coming from the township’s road structure renewal funds.
