HomeMy WebLinkAboutDSD-2023-474 - Rossford Cres Reconstruction budget and purchase order
Development Services Department www.kitchener.ca
REPORT TO: Finance and Corporate Services Committee
DATE OF MEETING: October 30, 2023
SUBMITTED BY: Chris Spere, Director Engineering, 519-741-2200 ext. 7412
PREPARED BY: Chris Spere, Director Engineering, 519-741-2200 ext. 7412
WARD(S) INVOLVED: Ward 8
DATE OF REPORT: September 12, 2023
REPORT NO.: DSD-2023-474
SUBJECT: Rossford Crescent Reconstruction budget and purchase order
increase
RECOMMENDATION:
That the budget for the Rossford Crescent Reconstruction be increased by $400,000,
funded by WIP; and,
That the purchase order for AECOM be extended by $228,500;
REPORT HIGHLIGHTS:
The purpose of this report is to increase the budget for a project that is more complex,
with a longer construction duration and a delayed start than initially thought due to
design changes that occurred during construction.
The financial implications are limited to an additional transfer from the WIP reserve,
This report supports the delivery of core services.
BACKGROUND:
Engineering Services is proceeding with the reconstruction of Rossford Avenue. The
services on this road were originally constructed in the and were in need
replacement. Funds for construction have been approved by Council as part of the 2022
budget.
The administration, design and tendering, and the construction administration and
inspection of this project is being completed by a consultant, AECOM.
Full funding for this project has been approved by council as part of the 2022 budget
process. The project was scheduled to be completed in a single year beginning July 2022,
but has extended over two years, and is located within the Ward 8 boundary.
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re Program (WIP) for road
reconstructions. The length of the project is approximately 530 metres.
Construction of the Rossford Crescent Reconstruction was publicly tendered by the city and
was awarded in the spring of 2022 at a cost of $4,659,323.24.
for the amount of $248,600. This included
design, tendering and construction services based on 95 days of construction.
REPORT:
This reconstruction was tendered and had construction being completed in 2022.
A post tender change to the project scope occurred, which removed several items that were
initially included in the tender. This resulted in a cost savings but changed the planned
construction methodology and extended the construction duration for the project.
Construction started late in part due to material delivery issues and locate delays.
Construction production has been slower than what was anticipated and was included in the
tender and consultant assignments. This resulted in a longer construction duration and the
project requiring stages to be completed in 2022 and 2023.
Additional time and effort for our consultant is required due to the changes in construction
methodology and ultimate duration of the construction. The initial consultant assignment
included 95 days of anticipated construction days. During tendering the construction
contract was increased to 120 days and an additional 110 days are now necessary to
complete the project in 2023 (total of 230 construction days).
It is reconstruction of
Rossford Crescent be funded by WIP. The reasons for this include:
Additional construction time not anticipated in the initial consultant assignment.
Additional construction staging spanning multiple construction seasons.
The purchase orders for the consultant (AECOM) will need to be increased by $228,500.
STRATEGIC PLAN ALIGNMENT:
This report supports the delivery of core services.
FINANCIAL IMPLICATIONS:
Capital Budget The recommendation would result in a $400,000 transfer from the WIP
reserve to the Rossford Crescent capital account. There is sufficient funding in the WIP
reserve.
Operating Budget The recommendation has no impact on the Operating Budget.
COMMUNITY ENGAGEMENT:
INFORM
the council / committee meeting.
PREVIOUS REPORTS/AUTHORITIES:
FIN-2021-60 2022 Capital Budget and 10-Year Forecast
APPROVED BY: Justin Readman
ATTACHMENTS: