The delays also necessitated a mediation that included – among its other terms – a 25% increase to the total project project cost to $144,487,330 (up from the original budget of $115,428,999) increase to the contract price of $1.975-million. The increase is mostly due to higher construction costs and increases to the construction contract through mediation settlement agreements with the contractor.
While this is not a desirable turn of events, the report pointed out, Statistics Canada figures show the construction price index for Canada's metropolitan areas has increased 32.9% for residential and 23.3% for non-residential projects over the same time period due to dramatic increases in costs for materials and fuel, as well as issues with supply chain, labour disputes and shortages.
Going forward, the contractor is required to provide monthly schedule updates and, if any delays are identified to provide a recovery schedule that include measure to mitigate the delay to meet agreed-upon occupancy dates.