Carbonear awards tender for new depot
Town forced to borrow additional funds after lowest bid exceeds estimate
Work to renovate the new municipal depot in Carbonear should begin shortly following the town’s awarding of the tender.
Eastern Contracting Ltd. of Mount Pearl submitted the lowest bid at $907,938 (HST included). Seven companies bid to renovate the building at 1 Pike’s Lane purchased last year to serve as a new depot. The highest bid came in at over $1.7 million. Council approved a motion to award the contract at last Monday’s council meeting.
Because the bids were higher than the town estimated, it will now seek approval from the provincial government to borrow an additional $370,000 to complete the project.
The overall cost for the depot, including the land purchase, consulting fees and renovation costs, will jump from $1.53 million to approximately $1.90 million.
Town chief administrative officer Cynthia Davis told The Compass the bids were received prior to the adoption of the 2017 budget, thus the increased costs were accounted for.
The town initially wanted to set up a depot to protect expensive equipment from wear and tear on a piece of property purchased in 2014 on Goff Ave. for $180,000. It budgeted the project at $1 million.
However, an estimate from a consultant indicated building there would cost $4-5 million. Scaling back the concept reduced that figure to $3-4 million.
Davis said the contractor would commence work “as soon as possible.” The town estimates the new depot will be ready to use by the late spring or early summer.
The Town of Carbonear anticipates the recently-hired contractor will commence renovations on a new town depot building in the near future.