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Council to View Options to Reduce Costs at Waterfront


June 14, 2010 – Following a review of cost-saving options, Administration is recommending tonight that City Council accept a negotiation with the low bidder for major works at the waterfront to bring down the cost of the contract by about $1 million.

A pre-tender estimate for one of 14 tenders for Phase One of Prince Arthur’s Landing was $12.75 million. The lowest bidder, Tom Jones Corporation, put the contract at $14.99 million, about $2 million above estimates.

Tender WD-05-2010 includes major work to the Public Elements of Prince Arthur’s Landing including the Baggage Building Arts Centre, Water Garden Pavilion, ice rink and splash pad, as well as the major water features, key amenity spaces, festival storage building and Pond Pavilion.

Options to reduce the cost of this tender include re-tendering the bid with a reduction in scope, or negotiating the price through price value engineering. Administration is recommending the negotiation method. A savings of $1.02 million can be realized by:

  • Not building a Park Maintenance Building 
  • Eliminating the bird control system
  • Reducing the capacity of the ice plant
  • Changes to materials on festival storage building 
  • Modifications to pond decking and unit paving manufacturer
  • Reduce lighting over ice rink/splash pad

“We worked using a value engineering exercise with the low bidder (Tom Jones Corporation) to identify means of reducing the contract cost without significantly impacting the design quality or functionality,” said Katherine Dugmore, Waterfront Project Manager.

“City Administration is recommending the option for cost reduction in which the functionality and long-term maintenance are not impacted, the quality of materials and finishes is maintained, and there is a significant cost savings and sufficient contingency.”

The contract was originally planned to go to City Council for approval on June 7; however, the extra week was required to develop and review the cost saving options.

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Contact: Katherine Dugmore, Waterfront Project Manager, 625-2406