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Prince George orders review of capital project management after cost overruns

Prince George orders review of capital project management after cost overruns
CITY OF PRINCE GEORGE—Prince George's Fire Hall #1 (pictured) is one of several over-budget capital projects that have prompted the B.C. city to order a review of capital project management.

PRINCE GEORGE, B.C.—After project cost overruns on several capital projects, the City of Prince George announced it will conduct a project management review.

“Every year, the city undertakes hundreds of capital projects that range in size, cost, and complexity,” reads a statement from the city. “Making them more predictable and affordable during both construction and operation is the goal.”

City officials stated the review was initiated following high costs on recent capital projects including Fire Hall #1 and the downtown parkade, but the broader issue of infrastructure reinvestment and renewal is an area of focus for the council. In addition, budgets, expenses and capital project management emerged as top priorities among the 1,020 residents who participated in the 2020 City budget survey.

The Capital Project Management Review will consider the life cycle management of multiple types of capital projects and will cover many topics, including:

– A review and analysis of current City of Prince George practices and processes;

– a review of best practices in comparative communities;

– recommendations for a project management policy and framework and related administrative procedures; and

– recommendations regarding training and communication.

The city will be issuing a request for proposals and is aiming to have the review completed later this year. Funding for the review will come from the city’s Northern Capital and Planning Grant Reserve Fund.

According to the city’s most-recent annual report, more than 130 capital projects were worked on in 2019, representing more than $52.5 million in expenditures that year.

The 10 largest projects by dollar amount included facilities, road rehabilitation, water and sewer projects and vehicle replacements.

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