Recently, on social media, there have been discussions about the “change orders” associated with the two-block arena and library project.
The city has entered into a Canadian Construction Documents Committee 2 (2008) stipulated price contract with Aquicon. Change orders are processed as part of the contract and are formal funding requests to address items not anticipated at the start of the project. The city or the contractor may request a change order.
Change orders are an integral part of large-scale construction projects. Applications are reviewed and recommended for approval by the city’s architect and project manager.
The Construction Steer Group (CSG), which runs Colliers International, the project management company, is overseeing the twin-skate arena and library project.
When the CSG was created, the board authorized spending limits to deal with change orders.
The spending limits are:
Director of Recreation, Events and Facilities – up to $15,000
General Manager – $15,000 to $100,000
CSG – $100,000 to $250,000
Since construction began, the city has received 18 change orders totaling approximately $200,000. There will be more change orders to come as the project unfolds.
The city uses contingency funds in the project budget to pay for approved change orders. Therefore, change orders do not change the overall cost of the project.
Some of the related social media threads erroneously suggest that the price of the arena and library project will increase due to order changes and therefore the city is not being honest about the cost of the project.
The city has always been transparent about the arena and library project.
The stipulated price (fixed) construction contract is $43 million plus HST.
The overall cost of the project is $59 million. Within the overall project cost, there is a contingency to deal with change orders and other unforeseen costs.
The City does not anticipate an increase in the overall cost of the project.
To suggest otherwise is simply a lie and inflammatory.
For more on this, see the following staff report:
Learn more about the Two Skate Arena and Library project on our website.
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