Whitehorse Daily Star

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BILL ROCKETING UPWARD – The latest cost estimate for the planned Whistle Bend Elementary School has soared to almost $53 million. The site is seen above.

‘Liberal mis-management’ is to blame for school’s cost: YP

The Yukon Party is looking for answers for an apparent steep increase in the cost of the new Whistle Bend Elementary School, which hasn’t broken ground yet.

By Tim Giilck on April 14, 2022

The Yukon Party is looking for answers for an apparent steep increase in the cost of the new Whistle Bend Elementary School, which hasn’t broken ground yet.

The price tag for the school is now up to $52.8 million – from an original projection of $32 million in 2019.

Yukon Party MLA Scott Kent questioned the government on the huge increase without much success during question period Monday.

“On Nov. 21, 2019, the former minister of Highways and Public Works (Richard Mostyn) stated in the legislative assembly that the budget for the new Whistle Bend school was $32 million,” he recalled.

“In July 2021, the school had gone significantly over-budget and was now estimated to cost $43 million. So, in less than two years, the budget of this project had skyrocketed.

“However, the official Opposition has now obtained the confidential briefing note that indicates the school has gone over budget once again,” Kent added.

“The briefing note states — and I quote: ‘The total capital requirement for the project is $52.8 million.’ Can the minister tell us why the project is almost $21-million over budget?”

Highways and Public Works Minister Nils Clarke handled the question – and provided a somewhat confusing timeline and rationale for the sky-rocketing increase.

“The design/build contract was awarded to Ketza Construction Corporation for $42.8 million,” he noted.

“This cost reflects increased costs for building materials like lumber and steel as a consequence of the unjust, unlawful, and barbaric invasion by Russia into Ukraine.

“The design/build contract was a value-driven procurement,” the minister added.

“Value-driven procurements look beyond the price to make sure that the project brings as much value as possible to the community and the territory.

“In this case, the winning bidder earned points for their schedule, training plans, subcontracting plans, northern experience, and First Nation participation.”

The project is on budget and on time, he added.

“This school will be state-of-the-art,” Clarke continued. “It will have lots of environmental attributes that will make it incredibly energy-efficient.

“We will reduce greenhouse gases by having the students who currently reside in the dynamic and growing neighbourhood of Whistle Bend being able to, hopefully, largely walk to school, bike to school, kick-sled to school, or however they wish to get to school not involving a motor vehicle.”

Kent was quick to point out the briefing note he was referring to is dated to November 2021.

“We find it interesting that the minister is blaming the war in Ukraine for this project going over-budget, because the confidential briefing note that we have obtained indicating the $21-million cost overruns is actually dated Nov. 22, 2021, three months before the war started.

He also questioned Clarke as to whether the new First Nation Procurement policy is having any effect.

“While we appreciate that overview from the minister, the question was about the budget for the school. There was absolutely no answer to the question that I asked, so I will ask again,” Kent pointed out.

The project is 65-per-cent over-budget in two years “due to Liberal mismanagement,” he said. “Can the minister tell us how much of these cost overruns are due to the First Nation procurement policy?”

Kent also questioned why the school will only be completed sometime during the 2023-24 school year – nearly a year later than scheduled.

“As I stated probably two weeks ago, I’m not going to take lessons from the former Yukon Party government on how to build schools, when to build schools, or how to build schools on time,” Clarke shot back.

“I would not take lessons from the members opposite on how to build small schools, or small schools that are too small to replace the (former) F.H. Collins structure.

“We know that the member opposite — the hard-working member for Copperbelt South — was integral in the planning and ultimately the implementation of the plan — the delayed plan — to build the middle school that is now the new F.H. Collins that will require serious consideration for expansion in the near future as, when it was built, it was at maximum capacity instantly,” Clarke noted of the Yukon Party government project.

“So, interesting concerns from members opposite — but, as I said, I’m not taking lessons from the prior Yukon Party government on how and when to build schools.”

Kent spoke to reporters afterward, expressing his frustration with the situation.

He said it’s impossible to determine the root causes of the over-run with the lack of information the government is providing.

Comments (31)

Up 0 Down 1

Riverdalian on Apr 20, 2022 at 9:48 pm

Minister Clarke, are you saying the school in Riverdale should have been larger, so we had even more students commuting across that little bridge?

Up 7 Down 4

Anie on Apr 20, 2022 at 2:30 pm

That's so cute - the minister says that students will walk, bike or whatever to school. They will not be driven. C'mon Mr Minister, students here get driven to school until the day that mommy and daddy give them their own car, no matter how close they live. .

Up 17 Down 3

Project Management - interesting comments on Apr 19, 2022 at 3:05 pm

Triple constraints: budget (how much, and what can we get for that amount), time (we need it by a certain date, how much will it cost) and 'scope' the big one - (here's what we want - what are 'must haves' vs 'nice to haves). Every project manager has to work with these 3 things, and it's harder than it looks. If a school needs to be built - and 'time' is becoming important - YG needs to find more money, or pare down the design. AND the freaking project needs to be managed to minimize over runs, and schedule. Good luck with that.

Up 11 Down 6

Zombie Liberalism - They don’t like brains, they prefer your hearts and minds… on Apr 19, 2022 at 2:33 pm

In response to - Yukoner123 on Apr 18, 2022 at 2:13 pm:

Your position is dangerously dismissive and it really demonstrates the flawed nature of your thought processes in this regard. Not only is it dismissive you have aligned yourself with what you “believe” is the correct opinion - And you do this with such an assertion that not only reveals your bias in such sharp contrast but also just how firmly entrenched you are in it.

Nice deflection with the argument from authority - Absolute poppycock. If you do not know enough about the subject matter to be able to counter the non-science arguments then why would I even consider offering you something that is obviously beyond your capacity for understanding?

But here it goes anyway:

But as environmentalists cheer the good news and policy-makers give themselves a pat on the back, a terrible truth has come to light: biomass power plants – a key renewable-energy source and one of the main replacements for coal-fired power – are emitting more carbon dioxide from their smokestacks than the coal plants they have replaced. In its haste to get rid of coal, the UK may have inadvertently made global warming worse.

Link:

https://physicsworld.com/a/biomass-energy-green-or-dirty/


Up 14 Down 9

Mitch Holder on Apr 18, 2022 at 2:36 pm

Remember folks, the folks building this went to school too...are you questioning Canadian education yet? Our whole academic system is designed to groom civil servants because they can't do anything else. They couldn't even do YOUR job.

Up 13 Down 7

Mitch Holder on Apr 18, 2022 at 2:33 pm

@ Yukoner123 - Calling a woodstove a "biomass system" doesn't make it any less a woodstove. Let me point something out to you. Before electricity, coal and oil, we used wood and we did so for roughly several million years. Things were harmonious. Then the industrial revolution re-imagined our real world in plastic. Now, we can't go back to wood. Do you know why? Because there are 5 billion too many people in the world, that would not exist at all were it not for the conveniences of oil. When we do pull the oil, expect as many to die within 6 months to a year. It is impossible to provide for this population with this one planet alone. And that is why we call it a biomass system and not a woodstove, one shudders to even imagine burning wood at the price-point. You want to save the world, do GAIA a favour. Seek federally assisted dying. After all, that is why they invented it.

Up 13 Down 9

Yukoner123 on Apr 18, 2022 at 2:13 pm

@Zombie

"Biomass industries are global killers". Sorry, but you aren't being rational. Humans have been burning wood for warmth since the beginning of civilization. If burning wood is a global killer we would all be dead by now.

As for your "proof", all the links you provided are from far left tree hugger groups, not real scientific sources. So I'm not going to bother addressing the rest of your post.

Up 19 Down 10

Jim on Apr 18, 2022 at 11:29 am

@Observer, so the last couple of large projects using this format were well over budget and awarded to the highest bidder. Maybe you can give us some insight to where the value is in spending extra millions of dollars under the guise of employing more Yukoners. Have you tried to hire a carpenter, electrician or plumber lately? I think the reason the Liberals call it value add is it buys them votes. That’s their idea of value. And for a project to jump 20% before the ink is dry on the site sign should be somewhat alarming don’t you think?

Up 14 Down 9

Mitch Holder on Apr 18, 2022 at 9:40 am

Time to sell the new city hall, we can't afford both. This is why a Liberal government, for just once in my lifetime, could "learn" from pragmatism. You can't fix everyone's civic issues when you skip the potholes and Canada is nothing but a pothole now. And we paid for repairs in advance.

Up 16 Down 9

stephen on Apr 18, 2022 at 8:07 am

As a supply chain person who has worked on large construction projects, design/build contracts are expensive as there are a lot of risks and unknowns. I don't like them as the costs will go up when design is finished. You can build a contingency fund in but if you have to many cooks in the kitchen the price will go crazy.

They should have used a simple design from a previous school in the Yukon then added to that design. That would save on cost designs and limit the extra design. Even if you did this and factored in a contingency fund of 10% (that is what we use to do) there is NO WAY anyone can tell me this government could forecast the costs exploding for steel and wood since 2020. Ask anyone building house right now what their costs are now compared to 2019.

The Yukon party are idiots for saying this quote was from 2021. Hey bone heads Supply chain back then knew costs were up 30% plus for materials. Those costs have continued to increase. It does not take a rocket scientist to look at steel prices and lumber prices and see the trends from 2020 even before the war prices were still climbing just not as fast at the end of 2021. With the war and US infrastructure project the demand for steel and other materials will keep the prices high for the next few years.

Oh and for those saying why did you not order the material early, give your head a shake. First, the design is not finished so how do you order material? Second in most cases around steel you can place an order and (this goes back to even last year) the steel manufacturers will not give you a price. They will only give you a final price on the day they are about to ship your material as costs are that much in flux. Where do you store the material so it does not rust?

Armchair politicians and people wanting to spout off should talk to those working in the industry first before they comment otherwise they look like fools. Luckily you hide your names.

Up 13 Down 12

Zombie Liberalism - They don’t like brains, they prefer your hearts and minds… on Apr 17, 2022 at 6:22 pm

In response to - Yukoner123 on Apr 17, 2022 at 2:30 pm.

Your argument is dangerous, foolish, and very Liberal. You assert the following,

“The fact you think that a biomass system and solar panels are ‘virtue signaling’ shows a serious level of ignorance and lack of general knowledge when it comes to global warming… Biomass is cheaper and with a chip boiler we can source all the fuel here in Yukon or at worst…”

This is ignorance personified! Biomass industries are global killers:
The environmental impacts of burning biomass for electricity are well documented. When power plants use biomass as fuel—in particular biomass that comes from forests—they can increase carbon emissions compared to coal and other fossil fuels for decades. The biomass industry also imperils some of our most precious forests. But this week, it’s the medical and public health community that’s speaking out about the ills of biopower. In a powerful new letter signed by the Allergy & Asthma Network, American Academy of Pediatrics, American Lung Association, American Public Health Association, Asthma and Allergy Foundation of America, National Association of County & City Health Officials, National Environmental Health Association, and Physicians for Social Responsibility, the health community’s message is clear:

“Biomass is far from “clean” – burning biomass creates air pollution that causes a sweeping array of health harms, from asthma attacks to cancer to heart attacks, resulting in emergency room visits, hospitalizations, and premature deaths.”

Link:
https://www.nrdc.org/experts/sasha-stashwick/health-groups-congress-burning-biomass-bad-health

Using trees and crops is being touted by the biomass industry as a way to curb carbon emissions, but it turns out bioenergy and biofuels are as bad as fossil fuels for the climate, the environment and local communities.
On our rapidly changing Earth, everything is connected. The need to abandon unsustainable resource extraction grows more urgent with each day that passes. That’s why we need to talk about biomass. The use of biomass (plant material) to create bioenergy (for heat or power) and biofuels (for transportation) is responsible for rising levels of carbon dioxide (CO2) and environmental destruction – starting well before the burning takes place.

Link:
https://www.oneearth.org/dangerous-delusions-biomass-is-not-a-renewable-energy-source/

Burning trees and other biomass is often erroneously categorized as zero-carbon or carbon neutral energy. But while burning biomass instead of fossil fuels may produce paper “reductions” in emissions, the atmosphere is not fooled.

The fact is that burning wood emits more carbon pollution per unit of energy than even coal. And because burning wood adds carbon to the atmosphere much faster than trees can grow back to sequester it, replacing fossil fuels with forest wood can increase net greenhouse gas emissions for decades or even centuries.

For the disastrous consequences of a policy that pays people to burn trees for energy, the European Union and Britain are prime examples. Bioenergy incentives are driving catastrophic levels of illegal logging in the last ancient forests of Eastern Europe and have created an export wood-pellet industry in the U.S., Canada, Russia and the Baltics that did not even exist 10 years ago. Entire forests are felled, ground up, turned into pellets and sent up smokestacks in the EU, the U.K., Japan and Korea.

Link:
https://www.ewg.org/news-insights/news/biomass-energy-dangerous-carbon-shell-game-putting-forests-and-climate-risk

Up 13 Down 14

Yukoner123 on Apr 17, 2022 at 2:30 pm

@Northof60 The fact you think that a biomass system and solar panels are "virtue signaling" shows a serious level of ignorance and lack of general knowledge when it comes to global warming and the general economics of energy. Its hard to trust your other comments when you say things like this.

Here is a starter for you: The global economy is in the process of stranding a huge amount of oil/gas supply in Russia. This will ensure fossil fuel prices stay high for a very long time. Biomass is cheaper and with a chip boiler we can source all the fuel here in Yukon or at worst, just across the border in BC or AB.

Up 13 Down 22

Observer on Apr 17, 2022 at 10:09 am

Ha ha, Kent going on about how the FNPP is to blame for the cost over runs. The thing that the so called Yukon Party is pissed about it that the cost over runs used to go to them and the good ole boys, now they have to share it and they don't like it.

Up 20 Down 8

North_of_60 on Apr 16, 2022 at 8:09 pm

Whenever a building is designed to win prestigious design awards instead of functional utility, then of course it's going to be over-budget and expensive.

They could make it simple and functional like the Hidden Valley school and delete the frivolous virtue-signaling elements like the biomass heating system, and photovoltaic solar panels on the roof. These are not economical and can always be added later if deemed necessary. There are many ways this opulent design can be made more cost effective.

But hey, it's all someone else's money so who really cares what it casts, eh?

Up 21 Down 6

Kasha on Apr 16, 2022 at 4:32 pm

How can they be needing more money when they awarded the highest bidder. Poor management of the public purse. Craziness….

Up 26 Down 5

Groucho d'North on Apr 16, 2022 at 10:33 am

"An elephant is a mouse built to government specifications." Robert Heinlein

Up 19 Down 15

Zombie Liberalism - They don’t like brains, they prefer your hearts and minds… on Apr 16, 2022 at 9:34 am

Exactamundo - Sheepchaser on Apr 15, 2022 at 7:06 am:

Make Parents Accountable Again!!! Reduce the influence of the despotic Liberalism that is interfering with societal cohesion.

Up 17 Down 7

Charlie's Aunt on Apr 15, 2022 at 6:27 pm

Use portables because guaranteed that 5 minutes after school is built it will be declared not large enough and they will be needed anyway. Might as well begin same way as part of it will end up.

Up 31 Down 6

Chuck Farley on Apr 15, 2022 at 8:40 am

its not rocket science to determine the high costs related to the school ohh and the proposed new city hall and until the economics improve do not build. Private contractors are not dumb and when they see a government tender they see $$$$$$ and add ohh 30% to the cost (not fixed costs).

Up 30 Down 22

Sheepchaser on Apr 15, 2022 at 7:06 am

Imagine the kind of digital education system you could build for $50M. Then redirect the staff salaries to parents for taking care of their own kids.

No more union. No more staff shortages and unqualified teaching assistants filling the gaps. No more endless movie days in the classroom. No more physical bullying. No more bad habits spread by problem children and their problem families. No more of children forced into a system built and run for the convenience of the adults.

Get together for sports and other activities. Keep socialization fun.

The pandemic has presented us an opportunity to reimagine a societal structure that focuses on family and leaves behind the toxic overbearing community prejudices.

Why keep doing that things that aren’t working?

Up 36 Down 15

Jim on Apr 14, 2022 at 7:52 pm

@eyeroll, no, Silver cannot control the supply chain or global inflation. But he and his cronies are 100% responsible for his procurement policy which has on both 40+ million dollar projects gone to the highest bidder and cost taxpayers multi million more. He and his federal Liberals imposed and even raised their carbon tax on fuel which adds cost to every piece of lumber and steel that is transported anywhere in Canada.

Up 40 Down 1

Yukoner on Apr 14, 2022 at 7:47 pm

Would be really great if these politicians could actually just work to get something done instead of perpetually trying to figure out who the bigger screw up is.

Up 28 Down 1

The second oldest story on Apr 14, 2022 at 7:25 pm

I know it’s an antiquated search, but look at all the stories of capital projects in Yukon that have grossly exceeded the agreed upon cost. Wakey, wakey people.

Up 47 Down 34

BnR on Apr 14, 2022 at 5:25 pm

This moment of faux outrage brought to you by Scott Kent, the guy who let the Wolverine mine go into production without its bond in place.
Speaking of mismanagement.....

Up 57 Down 11

King Richard on Apr 14, 2022 at 5:15 pm

Richard is just confused… He reread his racist procurement policy statement and decided that the 20% kicker to FNs should, in this case, be 20 million… Long live King Richard!

Up 60 Down 27

Juniper Jackson on Apr 14, 2022 at 5:05 pm

The Liberals have mismanaged every issue they have looked at. Why would this school be any different?

Up 49 Down 12

Matthew on Apr 14, 2022 at 4:30 pm

And that's SO far, you can bet it WILL balloon to over $70M! So if plans were approved why hasn't material been ordered!? I mean it's not like steel and wood have expiry dates.. something our politicians should have though..

Up 33 Down 41

Eye roll on Apr 14, 2022 at 4:23 pm

Wait until the economics wizard Kent finds out about rising home building costs. That’ll be the libs fault to eh Scotty?

It’s amazing that Silvers policies have such an influence on the global economy and supply lines.

Up 13 Down 5

Snowball on Apr 14, 2022 at 4:06 pm

Lol when is fast food places going be built around there or stores, or just a part of Porter Creek.

Up 26 Down 3

Archie on Apr 14, 2022 at 4:05 pm

Imagine my shock.

Up 44 Down 6

Dan Davidson on Apr 14, 2022 at 3:34 pm

Of course, the governing party that first proposed this subdivision should have begun planning for a school at the same time.

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