The cost of Chatham-Kent’s planned transitional housing project is increasing after the contractor failed to meet the municipality’s requirements.
In September, Chatham-Kent Council awarded the project contract to NOW Housing to supply and install 50 cabins on vacant municipally-owned property on Park Street near Hyslop Street in Chatham at a cost of $3,801,697.43. The project plan, aimed at providing transitional housing for people experiencing homelessness, also includes one community building, one washroom pavilion, one security cabin and one utility cabin.
However, in an upcoming report to council, administration said Now Housing was unable to meet the “bonding requirement” of the contract. Municipal staff is now recommending that councillors rescind the previous approval and instead award the contract to Jayden Construction at a cost of $4,318,676.62.
Jayden Construction’s proposal was the second highest-scoring respondent during the request for proposal process, and was only ranked second due to the price.
If approved, the contract change will result in a cost increase of $516,979.19.
Council will vote on the change of contractors at its upcoming meeting on Monday.
