Metrolinx is closely monitoring supply chain issues that could impact the Hamilton LRT project – Hamilton

The Crown agency responsible for building Hamilton’s light rail transit (LRT) says it is “closely monitoring” current supply chain trends that could impact project costs by 3 .4 billion dollars.

A spokesperson for Metrolinx told Global News that the project is still ongoing, with property acquisitions and demolitions continuing into 2022 with the possibility of utility relocations starting later in the year.

“The route alignment, including length, is confirmed,” Matt Llewellyn told Global News in a statement.

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“Metrolinx has a team of experts who closely monitor any trends related to cost increases or changes, and help find solutions to ensure projects are delivered on time and on schedule. budget.”

During a recent interview with 900 CHML’s Hello Hamilton The MLA for Flamborough-Glanbrook responded to a Hamilton Spectator article that explored the possibility of rising construction costs, citing ongoing concerns over Calgary’s $5.5 billion Green Line LRT project.

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Donna Skelly told guest host Scott Radley that the province’s commitment to LRT has not changed and discussions “certainly aren’t happening right now” about potential cost issues.

However, the MLA admitted that business in the province was in ‘unprecedented times’ and the cost of purchasing goods and building materials was ‘skyrocketing’.

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“I’ve never seen such inflation,” Skelly said.

“We’re also seeing delays and that’s also adding to cost overruns, and again we’re having a challenge getting construction materials.”

Hamilton’s LRT was officially back on track in May 2021 after government Doug Ford canceled the project in 2019 citing cost overruns including the construction and continued operation of the line.

An agreement between the provincial and federal governments to jointly fund the 14-kilometre light rail for $3.4 billion resurrected the project.

The City of Hamilton will retain fare revenue once the LRT is operational, but will be responsible for day-to-day operating and maintenance costs.

The province has officially said it will cover cost overruns during construction, but Skelly argued they’re likely not unlimited.

“My concern is at what point do we say, you know, is this going to become a $4 billion project? Is it going to become a 5 billion dollar project? said the deputy.

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And if so, should we possibly ask the city to contribute financially to this project? Or are we watching a reduced version of the track? »

In late January, the president of the Calgary Addition of CTrain admitted to delays in supplying the project to move utilities through the Beltline and downtown to make way for a tunnel.

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The largest and costliest infrastructure project in Calgary’s history has project leaders worried about higher material and labor costs, and the prospect of competing projects in Ontario, Quebec and British Columbia ready to accept offers for contracts.

In light of the risks, project managers split the first stage of LRT construction into smaller phases, fearing they could even build a planned second phase.

A similar “break” strategy is something Metrolinx says it is considering for Hamilton’s bidding process.

Currently, the agency is looking for approximately 30 properties which it will likely need to acquire to reach the full 90 properties it needs to complete the project.

Several hundred partial acquisitions should also be completed over the next year.

© 2022 Global News, a division of Corus Entertainment Inc.

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