Photo: File photo
As of 2024, construction costs for Vernon road infrastructure have increased by 126 per cent since 2014.
The data comes from a report submitted to council ahead of its regula meeting, Monday. The report says the cumulative increase since 2014 had reduced the capacity of “the 1.9 per cent infrastructure levy and the city’s ability to renew infrastructure consistent with council approved asset management plans.”
Costs include roads, sidewalks and curbs.
Despite the increase over the last decade, costs decreased by 0.6 per cent from 2023 to 2024.
City staff say this appears to match current market trends, and is a significant shift from the rapid escalation seen in 2022.
“Construction costs for road infrastructure increased by 6 per cent from 2022 to 2023 and by 41 per cent from 2021 to 2022,” reads the report.
Staff say attempts are being made to mitigate cost escalation through things like early tendering, multi-year contracts, extending completion times, combining projects and partnering with other municipalities.
“The intent is to attract more vendors to increase competition, as well as reduce time constraints that may otherwise drive up costs,” reads the report. “Staff have begun implementing some of these methods and intend to continue to do so going forward in an effort to keep costs competitive.”
An assest management plan is expected to be presented to council in the fall which will consider the renewal of investment requirements under the infrastructure levy envelope.
The report will be submitted to council at its regular meeting, Monday.
