April 15, 2009

Municipal waterworks projects keep London-area contractors optimistic

MARY BAXTER

correspondent

A $20 million project that will supply water to two communities near London is one of several reasons why the area’s local construction community remains optimistic despite the recession.

But competition from companies outside of the London region is still making for some aggressive bids on jobs, admits the president of the London District Heavy Construction Association.

“People are still being very aggressive (on bids); I think people are being a little nervous out there, trying to lock in some work; they don’t know what the future will bring,” says Gerald deVries. At the same time, the number of municipal projects in southwestern Ontario means contractors are having a tough time keeping up with all of the bidding, he says.

In terms of sewer and watermain work, deVries says he’s seen $20 million tendered already — just in the London region. “Plus there’s always projects coming out in the summer time that we don’t even know yet.”

Justin Lawrence, London’s division manager of construction administration, says the city has approached 50 per cent of the projects tendered.

He estimates there’s about $19.76 million allocated to general right of way sewer and waterworks for 2009. That’s up about $1.6 million from 2008 allocations.

Lawrence says the increases are intended to help the city minimize a large infrastructure gap.

“We’ve certainly not closed the gap, but we’re working in the right direction,” he says.

Included in the budget is a $3 million project to reconstruct the watermain and sewer along an 800-metre section of Ridout Street. The project begins in May and is scheduled for completion in October.

“It’s replacing deteriorated infrastructure,” Lawrence says, noting that the sewer system was introduced in 1914.

Lawrence says he hasn’t analyzed whether bids this year are falling significantly below the city’s preliminary construction estimates.

The winning bid of six on a regional water pipeline project, however, has come in at nearly $2.455 million below the preliminary construction estimate. And although it’s early days, Andrew Henry, division manager of the regional water supply for Lake Huron and Elgin area water supply systems, says tender bids “have generally been at or below anticipated estimates.”

Placed by Toronto-based Carrillion Canada, the bid of $9,122,635.48 applies to building a pipeline from a Lake Huron water system terminal reservoir in Arva, north of London, to the communities of Komoka and Kilworth.

It’s one segment of a larger, $20 million project to establish a 23-kilometre trunk transition main to connect these communities and Mt. Brydges, all west of London, to the Lake Huron primary supply system.

Henry says the project is divided into three contracts. The other contracts are building a pumping station in Arva, $3 million; and installing pipeline from Komoka to Mt. Brydges, $6 million.

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