The COVID-19 pandemic is driving up the cost of road work.
Director of Public Works for the Town of Petawawa, David Unrau, told members of council on Monday night (June 1st) that the Ontario Construction Secretariats has put out a report saying construction projects are up between 28% and 39%. Unrau says this is due to personal protective equipment costs, decreased production from social distancing requirements and other COVID-19 related protocols.
The Town of Petawawa and Laurentian Valley are seeing a direct impact as they plan to work on a section of Golf Course Road. Petawawa originally budgeted $1.3-million for the project, but revised the tender to show a cost of $1.8-million. Petawawa council voted to award the contract for the section of Golf Course Road from Petawawa Boulevard to Fairway Drive to H&H Construction at a cost of almost $2.1-million ($2,075,036.57). The financial implication is approximately $470,000 and the funds will be used from the cancelled Portage Road/Scott Avenue project. The Public Works Director in Petawawa also mentioned the lack of competition is making costs go up with only two bids coming in to do the job.
The cost of the work will be split between the two municipalities. Laurentian Valley council has also requested that local residents be connected to the Town of Petawawa municipal water system. All costs associated with connecting local residents to the water system will be billed back to Laurentian Valley. Laurentian Valley council is expected to vote on the project tonight (June 2nd).
Breakdown of the cost sharing:
