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Bennett Mechanical Installations Ltd. to build Tottenham sewage plant Environment and Sanitation

19 Jun 2014| Posted by Morris | In Environment and Sanitation

A new wastewater treatment plant in Tottenham is to be constructed by Bennett Mechanical Installations Ltd as per the recent contract; a lowest bid of $16,607,000 (not including HST) was quoted by Bennett. But a $2.5 million probability factor, and $358,000 in construction administration expenses, raises the total budget to $19.45 million.


According to Brendan Holly, Director of Technical Services, New Tecumseth updated the councilors about the contingency, which generally on a project this content is between 5-6 per cent, is approximately 14 per cent here because Bennett has served in a low profit margin, the higher rate to secure against expected change orders are recommended by the Town’s project consultant, Conestoga-Rovers.


The frequency, the quantity, and the aggregated magnitude of change order are likely to increase, with a contractor who has bid with a very low profit margin, and can conclude in double or even triple the normally expected range. Resulting in a probability that requests for a change orders by the contractor, can raise up to and beyond 10 to 15 percent of the actual contract price, as the low-bidding contractor has low profit, or risk margin, in their quote, commented by Conestoga-Rovers.


The new sewage plant is being constructed on site of the present facility, which will be deactivated. The Tottenham Secondary Plan involves the latest up gradation of the Mill Street pumping station, which will double the community’s propulsion.


A total of about $8.5 million is expected to spend in 2014, and the remainder covers over 2015, and 2016 when it’s likely to be substantially done. The development charges will look after its prospective financing, there are not much funds in DC wastewater reserves to evade long term financing.


The town should negotiate with the front-end financing deals with the developers, as per Paul Whiteside, Ward 3 councilor, which Mr. Holly proposed would happen as they come forward with subdivision contracts.


The proposition for this report is certainly to award the contract and also to mention that the developers have invested and front ended critical infrastructure capital for the Mill Street pumping station, which runs simultaneously with this project to facilitate servicing for Tottenham. The funding option would be at some other time, says Mr. Holly.

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