Extra $900K approved for administrative building project

FORT ST. JOHN, B.C. — The Peace River Regional District (PRRD) board of directors has approved a nearly $1 million increase to a contract for a new building. 

During the December 5th meeting of the regional board, the directors reviewed a report from staff requesting an increase of more than $900,000 to a contract for construction oversight and quality assurance pertaining to the district’s new administrative building in Dawson Creek. 

The project was awarded to Scott Builders on November 20th, with a proposal cost of approximately $14.19 million. A 20 per cent contingency brings the total amount to $17.02 million excluding taxes. 

The new building will be located at 1001 105th Avenue in Dawson Creek. 

According to a report from staff on November 20th, the entire project is budgeted at $19.96 million. 

Phase one, a land investigation, cost the district $54,918; phase two, land acquisition, was $0 due to a memorandum of understanding with the City of Dawson Creek and phase three, building design and construction procurement, cost approximately $1.19 million. 

Phase four, building construction, was estimated at $17.02 million, and an additional portion of the phase related to construction oversight and quality assurance was estimated to cost $1.7 million. 

The December 5th report provided a “full understanding” of construction oversight and quality assurance costs. In the report, staff requested an increase in the cost of a contract awarded to McElhanney engineering services entitled “architectural services.”

The contract pertains to “phase four deliverables,” which include construction oversight, quality control and quality assurance. The contract awarded ended up being under the $1.7 million budget, at $1.24 million, but now the staff-requested increase brings the contract to $2.15 million. 

According to staff, as of November 24th, $1.2 million of the contract had been spent, leaving only $38,000 to carry into phase four of the project. 

“The estimated cost of phase four engineering was 10 per cent of the construction costs inclusive of the 20 per cent contingency totaling $1,702,316,” staff wrote. 

The quoted price for the remaining work for the administrative building in the contract is $947,817. With the remaining $38,000 carrying over into the next phase of the project, staff required an additional $909,817 to be approved by the directors. 

The directors ultimately voted to approve the contract increase, bringing the total estimated cost of the project to approximately $20.1 million.

To read the complete report, see below.