Why are city construction tenders coming in so low?

The current rock-bottom oil prices may not be really be benefitting you personally, given all the stay-at-home pandemic travel restrictions.

But they may be helping the city keep its construction costs down, says Don Elliott, the city's director of engineering services.

"We're experiencing pretty low tender values these days," Elliott told Monday's City Council meeting.

"That could be partly because of the price of oil. It could be... that contractors really seem to have sharpened their pencils so we are reaping the benefit of lower prices."

"Those are probably the best answers I can give you at this point," Elliott said.

Elliott was responding to a question from Ward 2 Coun. Luke Dufour, who was asking about a surprisingly low successful bid for aqueduct repairs on Farwell Terrace between Wallace Terrace and Devon Road.

Avery Construction Ltd.'s low tender was $570,229.

With engineering costs and non-recoverable HST added, the city's cost to complete the project is $643,356.

"This is below the allocation in the 2020 capital budget of $1,225,000 aqueduct and bridge rehabilitation," says Carl Rumiel, manager of design and transportation engineering.

"Including the Second Avenue and Sixth Avenue projects, previously approved by council, the overall capital allocation is tracking under by $1,323,092," Rumiel says.

"It certainly seems like right now is a good time to be embarking on these capital projects," said Coun. Dufour.