Bridge Replacement Costs Slightly More Than Anticipated
Increased Tariffs Lead to Budget Exceedance for Confederation Bridge Project in Smiths Falls
In Smiths Falls, the replacement for the Confederation Bridge has come with an unexpected bump in costs. A whopping $159,000 has been tacked on, bringing the total to a bit over $2.26 million.
The Council rolled out the extra dough following the revelation of new cost implications during a committee of the whole and council meeting on May 5.
"At the time of the award, StructureCraft's pricing proposal was unscathed by Canada-U.S. trade tariffs," reads Paul McMunn, director of public works and utilities, in his report. This all changed, as tariffs rose the cost of importing timber to a staggering $66,000. To avoid a double tariff hit, the timber will now be sourced from a local Canadian manufacturer for $42,152.
Steel proved another challenge for the project.
"Steel manufacturers are taking caution, guessing there might be something coming down the pipe," said McMunn. "This caution has started affecting the supply chain and costs associated with those materials."
An increase of roughly $35,000 was what the steel hike amounted to.
Easily accountable for the rest of the costs is a high arch lighting feature. The design already incorporated handrail lighting, but the idea of incorporating overhead lighting drew a $81,400 price tag at the committee of the whole meeting on April 28.
"We're constructing an experience here," said Mayor Shawn Pankow. "We're building something that's going to be in our community for the next, hopefully, close to 100 years, and having the lighting enhances our ability to create a much more favorable experience."
The additional funds are proposed to come from the town's property tax-based reserve. McMunn highlighted that Smiths Falls received $495,000 through Natural Resources Canada's Green Construction through Wood Program, which will assist with the additional costs.
Probable Impacts of Unexpected Costs
- Budget Stretch: The unanticipated costs could squeeze the budget set aside for the project, potentially necessitating a shift of resources or additional financing.
- Revision of Financial Planning: Unexpected costs often lead to a reevaluation of financial planning, which might involve pursuing alternate funding sources or bargaining with suppliers.
- Timber Sourcing Changes: If tariffs have an effect on timber imports, a reexamination of the timber supply chain is imperative. This could involve seeking out local suppliers to dodge tariffs, which may raise logistics costs or affect availability.
- Material Alternatives: Facing hiked costs from tariffs could prompt a reconsideration of alternative materials that aren't subject to these tariffs or are locally sourced, which might affect the project's environmental impact or construction timeline.
- The unexpected increase of $159,000 in the budget for the Confederation Bridge replacement may force the allocation of resources differently or require further financing.
- With the unforeseen costs, the financial planning for the project will likely need to be revised, possibly resulting in the pursuit of alternative funding sources or negotiations with suppliers.
- The surge in tariffs affecting timber imports might necessitate a reconsideration of the timber supply chain, leading to potential increases in logistics costs or changes in availability.
- Facing tariff-induced hikes, there may be a need to reconsider alternative materials that are not subject to these tariffs or are locally sourced, which could impact the project's environmental footprint or construction schedule.
- The increased costs due to the tariffs on steel lead to a more expensive supply chain, which officials are hoping can be mitigated by adjustments in strategic planning and negotiations.
- In light of the rising costs of certain materials like steel, there's a hope that the structure of the project and the sourcing of materials can be restructured to minimize the impact on the final cost.
- The entertainment value of the project, as evidenced by the decision to incorporate high arch lighting, contributes to a positive public opinion and enhances the overall experience, despite the additional costs that come with it.
