The minister responsible for NL Housing admits that the $2.6-million contract for six new single bedroom units in Corner Brook is on the high side, but notes it does fall within the internal pricing range set in their budget.
Minister John Abbott was responding to the cost of the contract which amounts to about $433,000 per unit.
He says the tender, which was awarded to Brook Construction, includes a fair amount of work on Crestview Avenue where a number of vacant and derelict apartments once stood.
He says it’s not only the six units above ground, but the underground infrastructure that has to be replaced and upgraded as well.
“Plus it’s on a steep incline, so that would add more cost than your typical home on a level lot. Yes, it was a bit on the high side, but we were comfortable with it and ordered the tender as a result.”
A previous RFP for 50 new units failed to result in a successful bidder, forcing NL Housing to issue another one for six units.
“We only received one proposal (to the original RFP),” says Abbott. “Unfortunately, it didn’t meet our technical requirements from an engineering point of view. So we had to cancel that proposal call. Then we went to tender for six units to get work started on some housing units for the Corner Brook area, and then this fall we’ll issue further tenders for the remaining 44 units.”
