2018-04-09 extra work on Oceola

Have you noticed some work being done along Oceola towards the Lake Hill Drive/Okanagan Centre Rd East intersection?  The work being done is some final tweeks the contractor was responsible for in finishing the sidewalk and road work project from 2017.  It is not the new roundabout planned for that intersection that was included in the 2018 budget. 

The 2018 budget allocated $1,100,000 for the Oceola roundabout construction project and the lowest bid received was $1,460,000 – substantially over budget.  The District only received two Tender submissions for the project which is a telltale sign of the busy construction market and price volatility.  

Due to the significantly over budget Tender and  very busy construction market within the region at present, this project will be postponed and likely combined with the Okanagan Centre Road East improvements planned for the next few years. Combining projects should result in a more attractive tender package that may entice greater interest and more competitive pricing.

The busy construction market makes us a bit vulnerable to price volatility and potential for cost overruns on projects.  We are working on a number of strategies within our purchasing process to put Lake Country in a better position so we don’t have to pay high premiums to get needed projects in the community done.