Paradise turf contractor wants extra money to cover higher fuel costs
By Mark Squibb/October 21, 2022
Just a couple weeks after hosting a thrilling Friday Night Lights to mark the official grand opening of the new multi turf field at the Dianne Whalen Complex, Paradise council has had to spend additional monies to cover the cost of fuel increases related to the project.
Councillor Deborah Quilty explained that petroleum cost adjustments since the time of the project tender is governed under provincial government policy.
“Fuel cost adjustment can be triggered when there is a change to current fuel prices of 10 percent from the price at the time of the tender close,” said Quilty. “There has been a significant increase in the price of diesel fuel over the life of the project. It has been significant, as we all know. Cost per litre of fuel was around $1.33.9 at the start of the project, and reached a high of $2.47 cents a litre in June of 2022. Given the increases in fuel pricing over the life of the project, the design-builder has submitted change order number seven in the amount of $15,445, including the HST, to cover the additional fuel cost for the civil work on the project.”
In accordance with provincial government policy, Quilty said, it was a reasonable request given “the fact that this clause is triggered for other similar projects executed by the Town, which are funded, and the increase of the cost of fuel, from the tender close, experienced over the life of this project.”
Quilty moved that council approve the change order.
Councillor Glenn Carew asked whether the fuel was a part of the original tender agreement with the contractor, and Quilty said that it was.
Councillor Patrick Martin said the Infrastructure and Engineering Committee discussed the matter at great length.
“Given the circumstances with the fuel, and as we all know there has been a dramatic increase, we felt this was more than reasonable,” said Martin.
CAO Lisa Niblock clarified that it wasn’t necessarily included in the original tender document, but that it is considered best practise.
The total value of the project was around $2.5 million.