Ontario Construction News staff writer
With a $2.21 million funding shortfall due to market fluctuations, supply chain issues and additional costs for remediation, Welland Fire and Emergency Services Chief Adam Eckhart has asked council to defer building a training centre until 2023.
Eckhart requested $621,762 to finish the new Station 1/Headquarters, 400 East Main St., and Station 2, in addition to $1.6 million to complete the training centre next year at the new headquarters.
He told council supply chain issues, additional remediation costs and impacts from the pandemic caused a portion of the $2.25 million set aside for the training centre and tower to be used to offset the changes.
“The city’s project team as been working diligently with the project management firm, Mettko, to ensure creative and cost-conscious decisions are made to produce a high-quality building with a 50-year life expectancy,” the chief wrote in a report to council.
However, “the projects have experienced cost escalations due to a range of varying circumstances,” he explained. “Supply chain interruptions and market fluctuations have been responsible for cost increases.
As a result, there is a budget shortfall for the projects of over $2.2 million.
The project team has identified cost savings and applied for a $1.6 million grant from the Federation of Canadian Municipalities. A decision is expected within three months.
Despite the challenges and turbulent construction environment, Ekhart said he is confident that the construction of Stations 1 and 2 will finish on schedule this fall and “this will be the last funding call.”
All of the infrastructure, ground remediation, pavement, electrical servicing, water supply have been completed, however, additional funding is needed for construction of the actual training tower.
In a report to council, the chief said some of the challenges faced by the fire service in building the new Station 1 and Station 2 included three highly contaminated spots not found during an initial environmental assessment of the properties.
Removing PCBs found in the remains of a former pool at the King Street location and removing foundations at King Street, added $1.22 million to the project cost.
Also, an additional $492,182 was spent on glass, drywall, overhead doors and timber/wood due to price increases.
The fire service is consolidating four aging and outdated facilities into three modern, energy-efficient facilities.
On-site materials were used in concrete crushing and berms, and staff removed non-essential items for the contract, Eckhart said in his report.
Construction at both stations is expected to be finished this fall.