Pine Creek Wastewater Treatment Plant
Constructed to be a state of the art facility in terms of wastewater treatment, the Pine Creek facility also incorporated LEED’s silver requirements into its Operations and Maintenance Building design. Upon its completion, the project was awarded:
- The Consulting Engineers of Alberta Awards for Excellence for both Sustainable Design and Project Management
- Project Achievement Award from the Alberta Professional Engineers, Geologists and Geophysicists Association
- LEEDS Gold Certification rating for the O & M Building
Design capacity: 100 Million litres per day (first phase)
Initial Cost Estimate: $246.5 million (2003 dollars)
Initial Delivery Schedule: 2003 to 2007 (4 years overall)
July/2005 Budget Revision: $320 million (due to substantial construction and materials cost escalations – about 65%)
Final Budget Revision: $375 million (approved in the 2007 City Budget)
Actual Completion of Commissioning: Fall 2008 (4 years of construction), achieving its discharge requirements in one week of full startup operations with excellent effluent quality.
The main challenge was the unexpected and substantial increase in the level of capital construction in Alberta starting in 2005 through to 2008 driven by an unexpected surge in oil prices. This had the following effects:
- A substantial increase in the bid prices for standard work packages.
- A general lack of sufficient skilled tradesmen,
- More limited contractor bonding capacity,
- A reduced number of the construction companies which could or would bid the work,
- A reduction in the risks acceptable to bidding contractors
All of these required a revised contracting strategy to mitigate these problems, but inevitably all contributed to the increased delivery cost and schedule for the project.
Revay was mandated to:
- Assist in the evaluation of project risks during the early stages of project construction.
- Assist the change in the construction management system to realign it with the new contracting strategy.
- Assist The City in developing plans to successfully mitigate the potential for contractor claims.
- Assess the forecasted cost for installing the fermentation digester in 2008 versus 2010
- Evaluate The City’s position regarding the potential for delay damages and claims for escalation.