Contracts coming in under budget

So many Alberta projects are so far over initial budgets, it makes news when one comes in under budget. Two of the final contracts for construction of Calgary’s Pine Creek wastewater treatment plant came in almost $4 million below pre tender estimates. There are still two contracts to be let on the plant scheduled to be completed before the end of next year.

Water Treatment

CALGARY

The good news about the tenders is tempered by the long string of bad news that has dogged the project. The plant was supposed to cost $246.5 million. Two years ago city officials were looking at tenders for concrete and other materials that came in at $17.4 million higher than the initial estimate of $41.7 million.

A report of the day suggesting the cost over run could be as much as $52.6 million was sent back to double-check the figures. The report indeed proved wrong—Pine Creek is now estimated to cost $375 million, $128.5 million more than expected in 2005.

Upgrades on the Bearspaw and Glenmore water treatment plants have been going smoothly since last summer when Calgary City Council approved a revised $303 million, multi year budget for projects that were initially expected to cost $190 million.

Calgary water and sewer rates were raised when initial tenders started coming in about 15 per cent higher than anticipated because of labour shortages and demand for building materials.

The detailed design for a major part of the Glenmore facility is underway now.

Plant improvements mean the City of Calgary will become more efficient at delivering drinking water from the Bow River. Chlorinated water used to backwash filters has been discharged into the Bow River because no system existed to treat it for reuse. The upgrade of the Bearspaw water treatment plant eventually will see zero discharge of backwash water, sediment and chlorinated water to either the Bow or Elbow rivers.