West Kelowna burned by hot building market

City council told road, reservoir projects should be delayed because bids much higher than expected

Two public works projects in West Kelowna should be cancelled because bids came in much higher than expected, city staff say.

Fixing up Gates Road, Gill Road and Preston Road was estimated to cost $225,000, but the sole bidder for the project submitted a tender of almost $430,000. City staff explain the discrepancy by saying the projected work was of relatively small scope, and so of little interest to contractors. The recommendation before council at last night’s meeting was to re-tender the job as part of a larger road improvement project planned for next year.

As well, tenders for an expansion of the Glenrosa water reservoir were “significantly over budget,” council was to hear from staff. Expectations were the tenders could come in at about $2.6 million, but actual bids ranged from $3 million to $4.2 million.

Staff’s recommendation was to cancel the tender and reschedule the project for 2019, in the belief that prices will come down.

“The 2017 construction market has led to high prices and fewer contractors bidding projects than normal,” reads part of a report from Allen Fillion, West Kelowna’s general manager of engineering and public works.

“Although it is difficult to predict, it is anticipated that the market will chain over the next year and a half,” Fillion writes.

The reservoir expansion is an important priority, but not an urgent one, Fillion says.