ESQUIMALT, B.C.—The most recent budget for the Township of Esquimalt’s Public Safety Building has been estimated significantly higher than forecast.
In February 2021, an estimated budget of $42M was provided by project consultants. This amount was intended to include all aspects of the project including the cost of the new building, temporary facilities, industry standard contingency funds and all other costs. This estimate was updated in June 2022 with the project amounting to an additional $6M.
After tenders were issued in December 2022, the construction manager presented the township with an unexpected budget of $62.2M. Staff sought a second opinion to ensure confidence in the numbers presented by the construction manager, resulting in a similar budget amount.
Council now has to decide on the best way to move forward given the current cost estimates.
“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,” said Mayor Barbara Desjardins. “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.”
The increase is attributed to the higher costs seen regionally. The Vancouver Island construction market has in recent years seen annual escalation rates over 10% per year in contrast to the typical annual rates of 2–5%.
Just under $7M of the project budget has been spent so far on the renovations to accommodate the temporary police facility, removal of the old Public Safety Building, construction of the temporary fire hall and design work and consultant fees.
While the township has submitted grant applications where possible to mitigate cost impacts, there is no significant contribution in progress to contribute to funding.
A report to council is available on the township’s website that details the project status including timelines and the upcoming presentation by the project manager. Within the report are staff suggested actions for council to consider as well as impacts to the township.
The report will be discussed at Committee of the Whole on Monday, May 8 at 6 p.m. Recommendations from the Committee of the Whole are referred to a regular Council meeting before any decisions are made. The public may send in comments to council ahead of time or speak at the meeting over the phone or in person.
More information
- Learn more about the building design & process
- Read the project timeline
- View related council reports
- Public safety building construction to be tendered this spring
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Contact
Tara Zajac
Manager of Communications
250-414-7122
[email protected]