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Construction cost increases delay Red Deer highway project

Construction cost increases delay Red Deer highway project
CITY OF REED DEER—Red Deer officials are pausing a major highway project due to rising construction and material costs.

RED DEER, ALTA.—High costs have halted work on a City of Red Deer highway project.

The city announced it is “pressing pause” on the Highway 11A/Northland Drive project, originally scheduled to begin this year, due to increasing construction and material supply costs.

Officials explained bids for the project, which was budgeted for $47 million, came in more than $25 million over budget, leading the city’s engineering team to postpone work.

“We anticipated costs would be higher due to recent inflation of material supplies, but the quotes we received were substantially higher than our original budget,” said Konrad Dunbar, engineering services manager, in a statement. “The added cost, compiled with shifting growth patterns in our city, have led us to postpone the project for the time being.”

The work to twin Highway 11A from Highway 2 to Gaetz Avenue was supposed to begin this year, while roundabouts were to be added at both Taylor Drive and Gaetz Avenue intersections along 11A in 2023 and 2024, as well as construction of an overpass over the railway.

Approximately $9.8 million of the $47 million budget has been spent on design, land acquisition, utility relocates and other preliminary work. The remaining $37.6M of unspent budget will be returned to the original funding sources. 

“The work that has been completed will be necessary when the project is restarted, so those funds have not gone to waste,” said Dunbar. “The project will be rescheduled in future budget years in alignment with development.”

The city added it will continue to monitor traffic needs as development continues in the area to identify future timing for the project.


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