Bids for new bridge are higher than expected
Inflation is taking a bite out of everything – including the cost of the Nisutlin Bay Bridge project in Teslin.
By Whitehorse Star on March 16, 2022
Inflation is taking a bite out of everything – including the cost of the Nisutlin Bay Bridge project in Teslin.
It’s unclear whether the project will go ahead this year as scheduled after the bids came in over-budget, the legislature heard during question period Tuesday.
Yukon Party MLA Stacey Hassard asked about the status of the project after the bids closed in early February – and nothing had been publicly heard since.
“At that time, there were two prospective companies shortlisted to submit prices,” Hassard noted.
“Since that time, there has been no public communication about the project. There has been considerable speculation that this project is substantially over-budget.
“Can the minister confirm that the Nisutlin Bay bridge replacement is over-budget?”
Highways and Public Works Minister Nils Clarke said, “As we know, the Nisutlin Bay bridge is a critical link along the Alaska Highway and an
important landmark for Teslin.
“In the spring of 2019, the Yukon government and the Teslin Tlingit Council signed a historic project charter to replace the Nisutlin Bay
bridge.
“Through that agreement, we have been working together to plan for a reliable structure — one that supports active transportation by including shoulders and a walkway so that pedestrians and cyclists can safely use the bridge, LED lighting along the walkway, and a trail that will provide safe, all-season access underneath the bridge,” Clarke added.
“Through the procurement process for the Nisutlin Bay bridge, we have been working closely with the Teslin Tlingit Council.”
The project was estimated to cost more than $25 million two years ago. A current figure wasn’t specified in Tuesday’s discussion.
Clarke said, “We are currently in the process of evaluating both of the submitted proposals. I can advise that prices have come in higher than
anticipated due to current global circumstances and the high premium on steel and other materials.
“The higher prices are linked to a lot of factors related to the flooding events in B.C.’s Fraser Valley region, which, of course, have led to
many opportunities and demands for the repair of railway trestles, the Coquihalla, and others.
“(U.S.) President (Joe) Biden’s administration’s massive infrastructure project bill has certainly had inflationary pressures as well,” the minister said.
“Of course, awarding this contract is a high priority for us. However, we must also do our due diligence to evaluate whether we are making the right decision on behalf of Yukon taxpayers before we proceed with this award.”
Comments (10)
Up 1 Down 0
Jim on May 6, 2022 at 12:23 pm
@Nathan Living. You do understand that in 2 years the cost of the bridge has gone from a budget of 25 million to 160 million. That’s 6 1/2 times the original estimate. And much like the whistle bend school, before the ink drys on the site sign the project could jump more. And you are concerned that the YP is asking questions? Give your head a shake. Remember, inflation for us regular people is under 7%. If your a landlord apparently under 4%. But apparently on YTG jobs it’s closer to 300% per year.
Up 4 Down 2
JustSayin' on Mar 22, 2022 at 9:28 am
@Wilf Carter
Sour grapes? Are you upset that your bid at politics didn't work out for you? I'll send you some crayons so you can draw your feelings.
Up 10 Down 18
Oya on Mar 19, 2022 at 9:53 am
@ Nathan "it's a waste of taxpayers time to have the YP hammer away with indignation day after day." Um, that's actually their job as the official opposition. You do know that, right?
@ YP Please keep hammering away at these unaccountable Liberals. Worst government in my 30+ years in the Yukon.
Up 26 Down 17
Bahahaha on Mar 17, 2022 at 6:59 pm
Oh come on, tell them why the bridge is actually over budget??? The amount of points for specific Indigenous portions is primary the reason it is over.
Up 29 Down 28
Wilf Carter on Mar 16, 2022 at 7:45 pm
I have known Stacy H for over 30 years and worked with him and the only thing he is interested in is what he can get out of this project.
Up 31 Down 19
Nathan Living on Mar 16, 2022 at 7:11 pm
Who are these critics from the Yukon Party?
Of course materials can go up in a matter of weeks, just think about lumber and steel and fuel prices.
With a YP government our schools and bridges will cost less? Of course not. it's a waste of taxpayers time to have the YP hammer away with indignation day after day.
Up 78 Down 18
Leo on Mar 16, 2022 at 4:38 pm
The liberals keep thinking by adding FN bid reduction tender advantage is going to reduce pricing on any bid think again. Just another election vote promise zero value to Yukon tax payers or any tendered project.
Up 41 Down 6
stephen on Mar 16, 2022 at 3:49 pm
Ok people wake up. The CRU has gone up over 100% last year. Please tell me you updated your budgets before you went to market. That would translate to about 64% for your steel increase on the bridge.
Also going after the Russian oligarchies has caused one steel mill in Saskatchewan is not taking orders so this is going to put pressure on the other 2 mills supply.
Again I bet the procurement people were asleep at the wheel or the budgeters did not include procurement when building a budget.
At the same time any IDIOT MP from any party saying it's the governments fault should be recalled and replaced.
Up 58 Down 17
Matthew on Mar 16, 2022 at 2:44 pm
Ahh yes, who would have thought doubling Canadas debt in 2 years would cause hyperinflation.. LOL well of course everyone who doesn't have a masters in economics..
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Politico on Mar 16, 2022 at 2:43 pm
Yvonne doesn't understand why cost are going up at the school! Stacey doesn't understand why cost are going up! Cancel all government projects until the YP can get elected and they will get all the cost over runs under control!