Photo by Whitehorse Star
Company president Doug Gonder
Widespread ramifications seen after tender is cancelled
Norcope Enterprises is questioning the Yukon government’s decision to cancel a contract to begin development of phase seven of the Whistle Bend subdivision.
Norcope Enterprises is questioning the Yukon government’s decision to cancel a contract to begin development of phase seven of the Whistle Bend subdivision.
Company president Doug Gonder said in an interview Thursday the cancellation will push back development of phase seven by half a year.
Half a year is a long time when the demand for housing lots already exceeds the supply, he told the Star.
Gonder said his company is working on phase six, and builders are putting up houses in phase five right beside them – at a very quick pace.
Builders, he said, need the assurance of lot availability, and nobody is happy with the cancellation.
Gonder said he was low bid on phase seven at $7.8 million when the tender closed in May.
He was just notified this week the tender has been cancelled – and was not really given any explanation.
Completion of phase seven was scheduled for October 2022, but now, that is not going to happen, he said.
Gonder said he expects the cancellation will cost taxpayers $1 million with all the ramifications of the decision, including the rising prices of materials.
Norcope was planning to begin phase seven excavation this year. It was also planning on bringing in a bunch of materials like piping and manhole covers this summer and storing them at the site, he said.
Not only does the cancellation affect Norcope, he said, but also subcontractors like the paving company that would have been working on phase seven next year.
The government responded by email this morning to Thursday’s inquiry from the Star regarding the cancellation.
“The Whistle Bend subdivision is a large and complex project and currently the primary source of lots in Whitehorse,” says the government’s response.
“We have to plan and manage the construction effectively to ensure annual lot delivery. As we’ve just begun the detailed and overall design of Phases 8 to 15, we’re realizing some opportunities to adjust our approach to site management, tender phasing and other aspects of the overall project that included changes to Phase 7.
“We made the hard decision to cancel the tender but we think it will allow for better overall project management and lot delivery going forward. We will be tendering an updated Phase 7 and other phases and components of Whistle Bend work this fall and winter.”
The government said it’s committed to bringing on 1,000 housing lots over the next five years.
Gonder said one would think that with all years in the planning, design and development of the Whistle Bend subdivision, the government would have had certainty with the development of phase seven by now.
That there are last-minute changes – after the tender closed – does not speak well of the government, he said.
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Comments (12)
Up 0 Down 0
Leo on Dec 16, 2022 at 2:39 pm
Statement of costing $1m more is incorrect. This actually retendered contract actually cost $6m more for the identical tender. The only change added was his FN bid reduction policy. Mostyn should be very proud of this delay and gigantic additional cost to Yukon tax payers.
Up 8 Down 12
Sheepchaser on Jul 13, 2021 at 9:49 am
This is actually great to see. If what’s being said is truthful, that more time is being taken to better plan the subdivisions, traffic and power implications, etc... a delay by one season is not going harm anyone beyond repair. The contractor will get a smaller percentage on materials because the prices for concrete, wood and steel will probably have fallen by next year. So in that sense, they’ll have less opportunity to gauge the tax-payer which would then inflate the lot prices and eventual home prices.
Yes, there is great need for housing, but not more gigantic million-dollar cookie-cutter McMansions. Who really thinks taking on the upkeep and hydro bill on anything larger than 2000 sq ft in 2021/2022 is a good idea? Anyone? In ten years (probably five), it’ll cost twice as much to heat as it does today. Bank on that.
Maybe, in this new plan, every house can have a solar to grid system with a home battery to help average out power use at peak hours. A central battery for the neighborhood. Make a deal with the Energy Solution Centre or the Feds to subsidize at 50%. Really get organized about solutions that work for the entire territorial population while also the individual citizen’s economic prospects. But hey, radical solutions like that are not well understood by those currently in power. No pun intended.
Up 11 Down 4
Jim on Jul 12, 2021 at 8:13 pm
@Reason, maybe most people question governments ability to issue tenders because they are incompetent. If they had a reason to cancel, then it’s up to them to explain it satisfactorily to the low bidder. Instead they use talking points to side step the issue. Much like the Old Crow health centre for 45 million. 20% over budget and almost 20% above the lowest bidder and it’s awarded in the blink of an eye. Now contracts will be awarded based on value added, not on price. I guess that kinda leaves the door open to interpretation when awarding or as shown here, cancelling. If you were questioning contractors qualifications before, you're going to be in for a real surprise.
Up 18 Down 7
Yukoner on Jul 12, 2021 at 1:00 pm
@Reason
Yes blame the contractor... Sure there are tonnes of crappy contractors out there, but if YG cant figure out how to build suitable tenders to get qualified contractors then that's on them, they wrote the rules (which most of the time they don't even adhere to). YG is a black hole of sole sourced direct awards, QSLs, RFIs etc., etc., that they use to get around actually having to put effort into good contracting practices.
Up 13 Down 6
JT on Jul 12, 2021 at 12:20 pm
@Wilf Carter "...2% growth per year in the population when it is in fact 10%". What are you talking about? Can you even imagine the CAGR on a 10-year basis with a 10% annual growth rate?
Sorry Wilf, some basic math education may be required. Our population growth is NOT in fact 10%. Gawd, I hope no one ever takes anything you declare as an actual fact.
Yukon's rolling 10 year average pop. growth is ~2.4%. Last year Whitehorse did grow at an accelerated pace at ~2.87% - Dec 2019 to 2020. So, it is a number higher than 2 and hopefully planning is formally moving to work with models using a 3% annual rate.
Up 19 Down 10
Reason on Jul 11, 2021 at 7:47 pm
@Yukoner
What inside knowledge do you have of this contract or other government contracts? How do you know it was cancelled for little to no good reason? More often than not, there are legal or technical reasons why one side or another cannot come out and say exactly what happened. There are also some contractors who end up in court with the government a lot. You do the math.
Up 19 Down 16
Wilf Carter on Jul 11, 2021 at 11:18 am
Let's look at the real problems hear:
No forward planning for growth of population. As our mayor stated during the municipal election, 2% growth per year in the population when it is in fact 10%.
Capital spending instead of capital investing in such things as serviced land for different types of housing for all type of Yukoners.
Capital spending in the wrong places and projects going 180% over budget like the multi building project of the city estimated at $53.5 million and the actual cost not determined yet but over $90 million so far.
Up 34 Down 5
Tender is the night on Jul 11, 2021 at 3:23 am
You'd think that with the thousands of contracts let by YTG a standard procedure and set of rules would be followed including cancelling contracts.
But these contracts get violated for political purposes quite a bit such as when the Yukon Party sole sourced a contract to Total North Communications for over a million dollars on the bogus notion of a promise of a higher speed option.
It should be cut and dried not like we're reinventing the wheel all the time.
Up 68 Down 17
Yukoner on Jul 10, 2021 at 8:15 am
YG should have to pay a fee to any bidders of cancelled tenders. It takes a lot of time and effort to put in a proposal together and to have it cancelled for little to no reason is ridiculous.
Up 58 Down 10
Jim on Jul 10, 2021 at 12:19 am
This makes one wonder if this cancellation has anything to do with the government’s plans to implement the remainder of their procurement policy this fall. That way they can manipulate the outcome rather than using best value.
Up 57 Down 13
TMYK on Jul 9, 2021 at 7:46 pm
The Liberals promised the FN a piece of the housing game. Hope everyone is looking forward to housing getting even more expensive.
Up 61 Down 8
Politico on Jul 9, 2021 at 3:26 pm
Considering the population has grown at a rate of 700 people a year for the last 10 years phase 7 isn't going to start to ease the demand!