Petrolia officials say pandemic related delays, inflation and underestimating the work to be done has led to a 59 per cent increase in the cost of reconstructing Third/Kentail and Mutual Streets.

The town had estimated this major repair would cost about $1,073,855. But when the tenders came in, the lowest bid from Henry Heyink Construction was $1,704.239.80 – $630,385 more than expected.

“Part of the increased cost is due to the necessary servicing specifically for the anticipated south-east quadrant for residential development lands,” writes Chief Administrative Officer, Rick Charlebois in a report to council. “Currently staff are working with the parties for these lands to develop a service connection agreement.”

That Charlebois says could bring in about $216,000 meaning the municipality will have a $414,000 shortfall.

“When we put our 2022 Budget together, we did not have the detailed engineering (and) MIG cost estimates and under-estimated the costs.,” Charlebois tells The Independent. “Plus we did not know how much extra work was required to provide the extra capacities need for the developments to the south.”

And he says supply and labour shortages due to the pandemic and increasing supply costs because of inflation also played a roll in the 59 per cent cost increase.

The road tender is in sharp contrast with the bid by COPE Construction for a 150 meter section of Valentina St. It came 40 per cent under budget.

Charlebois says in that case, engineers expected water, sewer and storm sewers would need to be replaced. The water system won’t be replaced and only a small amount of sewer and waste water work needs to be done.

Council accepted the Henry Heyink bid saying the extra cash will come from the working reserve fund. Construction will begin in June.
Work on Valentina Street begins next week.

Residents there heard a small cul-de-sac would be installed at the entrance to the new townhouses and the street running through the development will be signed as a private road, hoping to reduce the amount of thru traffic in the area.