DRAYTON – The costs of the proposed Drayton water tower have soared 30 per cent due to COVID impacts to material pricing and supply chain.
A report to Mapleton council recommends awarding the Drayton elevated tank contract to Landmark Structure Co. at over $6.5 million.
Early 2020 estimates for the project by consultant CIMA+ put it closer to $4 million.
Given the resultant bid price, the report says Mapleton finance staff have raised water and wastewater rates by an average of $0.77 per day or $282.27 yearly.
Impacts from the pandemic are being directly identified as causing a rise in construction prices.
“The Canadian, as well as the entire global supply chain, has seen an impact from the pandemic, and specifically affecting this project, components such as steel, copper, lumber etc., as significant integral materials,” the report states.
An attached bid analysis from CIMA+ said the price of steel rebar has increased by 76 per cent between May 2020 and May 2021 with 30 per cent of that within the six-week tendering process.
“The prices of other construction materials including wood, copper and stainless steel are currently at their all-time high price, further complicating the bidding process,” the analysis states.
“These increases in material costs, coupled with supply-chain issues resulting from the COVID-19 pandemic have resulted in a significant impact to the overall tender price.”
Strong growth in Mapleton has proven a need to increase the supply of water within Drayton.
The report notes a previous study identified the town required additional water storage for minimum fire flow volumes.
Mapleton council will make a decision on the recommendation at a virtual meeting on Tuesday.
