Cost of Big Eddy Waterworks project much higher than estimated

Tender applications for the Big Eddy Waterworks project came in significantly higher than the estimated amount. As a result city staff are evaluating how to prioritize the remaining funds for the project and looking at how an increase in costs could impact other priority projects planned for 2017, such as the Illecillewaet water main replacement and the Thomas Brook water project.

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This image from the Jan. 23 MMM report shows proposed pipe system upgrades and changes for the Big Eddy water system. Photo: via City of Revelstoke document

Higher than anticipated costs for phase one of the Big Eddy Waterworks project has Revelstoke City staff looking at how other projects could be financially impacted.

The department of engineering and development has requested city council approve Mounce Construction as the successful tender applicant. Mounce Construction’s bid was the lowest, but the $2.56 million bid came in much higher than the engineering pre-tender estimate of less than $2 million.

“With the tendered price approximately 28% higher than the engineers’ estimate, an evaluation of priorities for the remaining funds will ensure the best use of these funds for the Big Eddy residents and businesses,” Director of Engineering and Development Mike Thomas said in a report to council.

The report further notes an updated work plan for additional phases of the Big Eddy Waterworks project will be developed and presented to council in the coming months.

Other bids for the project included Acres Enterprises at $2.64 million and Speers Construction at $2.86 million. While all three bids were higher than the pre-tender estimate, the report to council notes the higher than anticipated bids are not a cause for concern.

“As these prices likely reflect the realistic cost of completing this type of work in Revelstoke, staff are reviewing how this impacts planning for other projects,” states the report. Specifically there is concern over what an increase in cost could mean for the Thomas Brook Water and Sewer project and the Illecillewaet Water Crossing.

In addition to the higher than anticipated bids, the project includes replacing a number of water mains located in roads scheduled for replacement within the next five years and were included in the Road Asset Management Plan.

The road replacement was originally going to take place at the same time as the Big Eddy Waterworks project. City council removed the proposed road funding during its 2017 budget deliberations resulting in a change in the paving component of the project. The roads in question will be patched with the required work coming out of the Big Eddy Waterworks project funding and not from the roads fund.

Phase one of the Big Eddy Waterworks project is estimated to be completed in October 2017.