News

Nanaimo works with firm to reduce cost of water treatment plant

Council approved a contract for the South Fork Water Treatment Plant Monday, but it will have to work with the winner to whittle down the winning bid amount.

Kenaidan Contracting Ltd. was the low bidder out of four proposals at $47,570,000 – $5 million over the city’s budget.

The two parties managed to reduce the bid to $45,849,600 (excluding GST), a $1.7 million trim, and will work to continue to find items to delete or defer from the tender price without impacting the treatment process.

“The contractor has experience with similar projects like this before where the design comes in over budget, or the tenders come in over budget, and they’re used to working with the clients, in this case the city, to get this more in line and closer to our budget,” said Bill Sims, manager of water resources for the city.

The second round of cost reductions is expected to take a few months and, according to a staff report, the areas in the tender that were above the estimate are all part of the water treatment process, such as mechanical, electrical and instrumentation.

Council direction to staff was required before the tender expired on April 6. The contract for the membrane equipment was awarded several months ago, and the pipelines that will supply the $65-million facility are almost complete.

Broken down, the water treatment centre, expected to be completed in 2015, will be paid for with $17.8 million from the federal Building Canada Fund; $17 million from the Community Works Fund; $5.3 million in development cost charges; $6.4 million from water rate revenues and reserves; and $18.5 million in municipal borrowing.

We encourage an open exchange of ideas on this story's topic, but we ask you to follow our guidelines for respecting community standards. Personal attacks, inappropriate language, and off-topic comments may be removed, and comment privileges revoked, per our Terms of Use. Please see our FAQ if you have questions or concerns about using Facebook to comment.

You might like ...

TIMELINE: An interactive history of terrorist attacks and plots in Canada
 
Victoria police probe robberies linked to stolen fire department key
 
Exposing the uncommon man
Booking on comfort in times of need
 
Welcome Wagon honours long time businesses
 
Port Alberni Boston Pizza re-opening in sight
White cross memorial program gathers momentum again in South Cowichan
 
Cowichan gearing up for Earth Day fun
 
The Week - March 10

Community Events, October 2014

Add an Event

Read the latest eEdition

Browse the print edition page by page, including stories and ads.

Oct 23 edition online now. Browse the archives.