City staff working to cut costs for 2024 Asphalt Overlay Program

FORT ST. JOHN, B.C. — City council has directed staff to negotiate with Terus Construction to reduce costs and bring the 2024 Asphalt Overlay Program within the city’s budget. 

According to a report to council, estimated 2024 costs were calculated by applying last year’s costs adjusted for inflation. However, costs have risen much more than anticipated. 

The total tender price for the contract the construction company received is $3,442,471.79, while the city’s total budget is $2,200,000.00, leaving a deficit of $1,242,471.79.

During the May 6th special meeting, staff told the council they had met with Terus Construction to notify them of changes to the contract, adding that the contractor was receptive.

Staff were directed to remove all optional work, reduce costs by approximately $660,000, and amend unit prices where possible. 

The overlay program initially involved asphalt milling, paving, and curb removal on the following roads:

• Museum Road, between the Pomeroy Sports Centre and 100th Street; 
• 84th Street, between 93rd Avenue and 100th Avenue; 
• 115th Avenue, between 89th Street and 93rd Street;
• 92nd Street, between 112th Avenue and 115th Avenue;
• 114th Avenue, between 100th Street and 104th Street;
• 113th Avenue, between 98th Street and 100th Street; 
• 114th Avenue, between 98th Street and 100th Street; 
• 99th Avenue, between 102nd Street and 106th Street; 
• 104th Street, between 99th Avenue and 100th Avenue;
• Woodlawn Cemetery overlay.

Some road projects may be removed to accommodate the city’s budget. 

The report said, “There is a 10 per cent contingency accounted for in this project, and through diligent management and contract administration, staff will endeavour to minimize any and all costs to minimize budget overruns.” 

The report also says the tender award letter will be issued after successful negotiations. 

The full report can be viewed below: