Photo by Vince Fedoroff
A QUIET PLACE – The vacant Whistle Bend Elementary School site is seen today. The $42.8-million cost is almost $18 million more than the original estimate in the 2019 bud- get documents, Highways and Public Works Minister Nils Clarke was reminded Tuesday.
The planned new Whistle Bend Elementary School is seriously over-budget – and there’s no guarantee costs won’t increase further.
The planned new Whistle Bend Elementary School is seriously over-budget – and there’s no guarantee costs won’t increase further.
Yukon Party MLA Yvonne Clarke, whose riding includes the mushrooming subdivision, lambasted the government Tuesday over the issue during question period.
“The spring budget of 2019 allocated approximately $25 million for the project. By November 2019, it had already gone over-budget to $32 million,’ Clarke noted.
“Then, by July 2021, the budget had ballooned to $42.8 million. That is almost $18 million over-budget from the original estimate in the 2019 budget documents.
“Can the minister tell us if he expects the cost overruns related to this project to go even higher?” Clarke asked.
Highways and Public Works Minister Nils Clarke – no relation to Yvonne – answered, “Building a new school in the community of Whistle Bend is a high priority for the Yukon government.
“Highways and Public Works has worked with the Department of Education and the project advisory committee throughout the project to ensure the school design incorporates important community elements,” the minister added.
“The design/build contract was awarded to Ketza Construction for ultimately $42.8 million,” he noted.
Yvonne Clarke shot back, “When the school was first announced in 2019, the Liberals committed that the project would be completed by 2023. An August 2019 briefing note confirms that completion was targeted for June 2023.
“Will the school be completed by 2023?” she asked. “Or will this be a broken promise by the Liberals?”
Nils Clarke replied, “There is every intention of completing this project in 2023. I don’t really believe that the member opposite is pointing to much of a delay, but when you have these very big projects — this one is approximately $43 million — there are a lot of moving parts and contingencies.
“We also know that we are in the middle of a very tightened supply chain issue, so there could be issues,” minister Clarke added.
“Of course, we have been assured by the contractor that they will make best efforts to complete this project on budget and on time.
“I would also say that, given these supply chain issues and the global conflict that has arisen by virtue of this completely unjustified and illegal land war in the Ukraine, construction and material costs are unlikely to be getting any cheaper in the near future,” the minister noted.
“So, ultimately, we stand by the value-driven procurement that was made. Value procurement looks beyond the price to make sure that projects bring as much value as possible to the community and the territory.”
In this case, he added, “the winning bidder earned points for their schedule, training plans, subcontracting plans, northern experience, and First Nation participation.
“So, sure, I can take lessons from the Yukon Party on how you’ve managed school construction. We also note that there had not been an elementary school constructed in the Yukon in 25 years.
“This is going to be a leading-edge, energy-efficient, sustainable, very valuable education hub in the fastest growing community in the Yukon,” the minister concluded.
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Comments (8)
Up 8 Down 2
Jim on Mar 21, 2022 at 3:39 pm
@Stephan, maybe that is the issue here. I’ve always suspected design build was not a money saver, but more of a government washing their hands of responsibilities. It used to be the government’s job to hold meetings with the stakeholders and a architect firm to come up with a concept of needs and a budget. The mechanical bids were separate and a bid depository was used. But now we are subject to jobs being bid on with the final price being a crap shoot. We are also tied into a new procurement policy that can immediately increase the price by 20% or more. This is much like the Old Crow health Center was awarded to the highest bidder. With this project we aren’t talking 40% here. We are talking 70% with most likely increases going forward.
For some reason design build never comes in with a price reduction, but the norm being a price increase. On one hand the government is telling us inflation is under 4% (as per rental increase limitations) and on the next page not surprised with a 70% increase. I totally agree that you cannot build a house for the same price from 2019 to 2022. But I also believe nobody would forge ahead no matter what the cost. A responsible person or group would reduce some of the excess. And we all know the government loves excess. After all, it’s not like they spend money responsibly. I for one would be more upset if an opposition to the government didn’t ask these types of questions. I would also be much happier with real answers rather than well rehearsed talking points.
Up 4 Down 2
stephen on Mar 21, 2022 at 9:08 am
Wow from Yvonne's comments and uneducated comments on here I just have to laugh.
First if it is a design build then that means the designs have to be finalized and guess what costs will go up as designs change. The original price would have been the budget. Smart question would have been what design changes have been made to increase costs?
Second the minister hit it right on the head (i am gagging here because i agree with a politician). Higher prices for steel, and other commodities would have jacked this price up by about 40% or more. I dare you to take the same house built in 2019 and build it now and see the cost.
People need to wake up and educate yourself before making stupid comments at the political levelon here as you embarrass yourself. I am not defending this government I am stating facts I as work in SCMP.
I also don't agree with the new procurement process based on my 24 years in SCMP. It will add costs to any project. The thing is how do you find out what % that cost is. Only by collecting data will that become clear which will take a few years.
Up 13 Down 10
Romilda Vane on Mar 17, 2022 at 12:12 pm
Politico your comment is unnecessary. She's holding the Liberals to their promises. It's called being accountable. Perhaps you should learn what that word means.
Relative to the budget, of course, costs are going to rise, by pointing it out and bringing it up Yvonne is shedding light on this project and obviously cares about her constituents. She's making sure the project doesn't get put on the back burner like so many Liberal initiatives.
Up 12 Down 8
Lennie on Mar 17, 2022 at 11:46 am
Yvonne Clarke eh!! Not likely she has a first clue about construction. Sounds like Currie exhibiting his skills. I'll bet, recalling previous experience from some contractors, there will be NUMEROUS LEAKY ROOF PROBLEMS.
Up 11 Down 8
Hobo on Mar 16, 2022 at 6:20 pm
Yvonne seems to try to emulate MTG & LB in the US House by the theatrics question she's pursuing. My opinion.
Up 25 Down 7
Jim on Mar 16, 2022 at 5:03 pm
70% over budget and that’s the line the Liberal minister is using? They’ve accepted the highest bidders price, justifying partially by schedule. Although the contractor said they will try their best but there is no guarantee of that or the final price. So can we assume all project awarded under this new procurement process will carry this extra cost? Judging by the Old Crow Health Center and this one it sure seems like it. By training, subcontractor choice and First Nation portion we see our tax dollar doesn’t go as far as it use to. This government should not be in charge of the cheque book. I don’t think there is a responsible adult in the room.
Up 56 Down 8
Matthew on Mar 16, 2022 at 2:43 pm
LMAO! Too funny! Of course it's over budget, tell me what project isn't at least 25% over when all said and done.. it's almost as if they under bid to get the job and then slap mega bucks on for the "extras"... this is how it works folks..
Up 31 Down 33
Politico on Mar 16, 2022 at 2:40 pm
Well just cancel the whole project because Yvonne doesn't understand why cost are going up!