Thank you, Mr. Speaker. Mr. Speaker, my questions will probably best be directed to the Minister of Public Works and Services in regard to the bidding process this government has. Like I stated, most of the projects in the past have had some major cost overruns and in some cases have doubled in cost. Back then we used to use the Class D estimates to come up with the figure or the number that we were looking at. I know that the department has made a decision to look at Class C estimates. So I’d just like to ask the Minister, have we seen more accurate costs of those facilities and now we’re seeing less cost overruns or is that still a problem in regard to a lot of these capital projects?
Thank you, Mr. Krutko. The honourable Minister responsible for Public Works and Services, Mr. Michael McLeod.
Thank you, Mr. Speaker. Mr. Speaker, it was interesting to hear the Member rattle off a long list of projects that have gone over budget, many before my time. Mr. Speaker, I should clarify that we have a lot of projects that are on budget. We have budgets from the north end of the Territories and we have projects here in Yellowknife that are going well. So it’s unfair, I guess, to have the public think that all our projects are off their budget estimations.
Mr. Speaker, the Member is correct, though, when he states that we had looked at a capital process that we were utilizing for many years that allowed for projects to come in and be listed on the 20-year needs and then work its way into the five-year needs and sometimes just go right directly ahead of the line. That caused a lot of concern. At the beginning of this government we undertook, through Public Works, an assessment of that and decided that we needed to change the system that we were utilizing and have since now incorporated a new longer term assessment period. In the first year we would need to see planning studies. We wouldn’t move into the next phase, which would be design, until we had a need analysis and operational plan, a Class C cost estimate, and we also would not start construction until the third or fourth year. We also would look at warranty and things of that nature within the fifth year, including the commission of that actual project. We have made a lot of changes. I think it is a better system and allows us to do the proper due diligence and it is working quite well as far as we could see. Thank you.
Mr. Speaker, in regards to the contracting process that we use, we use negotiated contracts, sole source, bidding processes, but the project that comes to mind is the project in Inuvik. I know the original estimate when we were first looking on the books was $58 million. Then when they did basically another estimate, it came in at $79 million. The latest estimate is over $100 million. I would like to know, using the school project, is that project on cost, on time and, more importantly, can you state that there will be no cost overruns on this school project in Inuvik? Is that too soon to make that prediction? Thank you.
Mr. Speaker, a lot of Members are asking me to state whether the project is going to be on time and on schedule with no cost overruns. That is something that I can’t guarantee. In this case, the project is on schedule and within budget. We don’t expect to see any cost overruns that we can recognize at this point. We will keep the Member informed. We will certainly do a review of that project as we move forward also. Thank you.
Mr. Speaker, I could recall when we built the school in Fort McPherson at that time, because there was a possibility of cost overruns, they had to cut back or cut out certain things such as the gymnasium and whatnot. I would like to ask the Minister, is there actually a process that takes away certain parts of the project if it is over budget and that you have to come in on budget that you have to basically streamline that project so you are actually on cost? Is that still a practice of government where you have to actually develop a project on cost and also that means you have to downsize the project or streamline the scope of work? Is that something that is done by his department when there is a possibility of a cost overrun?
Mr. Speaker, there is a review that requires us to demonstrate need, to demonstrate the design and confirm why we would need certain designs. We are moving to a more consistent approach of what the actual needs are versus allowing for all kinds of inclusion including sometimes the community wants certain things for cultural aspect or things that would reflect art or things of that nature. We have to be very convinced that it is a useful part of the building. In the case of the new school, for example, we have done a lot of work in the early stages. The design was close to being something that we are going to be moving forward on and recognizing that there was a cost factor and, therefore, had to take a step back, do the review and reduce the costs so it could fit what our budget was. Thank you.
Thank you, Mr. McLeod. Your final, short supplementary, Mr. Krutko.
Thank you, Mr. Speaker. I would like to ask the Minister if he can provide the information on exactly what the actual costs for the Inuvik school project is, the office building in Inuvik and also the school project in Fort Good Hope, if those projects are on cost and, more importantly, if there is a cost overrun, to notify Members of the House. Thank you.
Mr. Speaker, depending on timelines and when the Member would like the information, we certainly commit to doing that. I am not sure if we have all the information to the point where we can predict that there is going to be a cost overrun, but we would certainly be willing and commit to sharing that information with the Member. Thank you.
Thank you, Mr. McLeod. The honourable Member for Sahtu, Mr. Yakeleya.
