The total costs for a new long-awaited Chatham Public Works garage has ballooned to $6.1 million, which is $2.6 million more than the original estimate.
During last night’s council meeting, councillors questioned why costs increased so much.
Inflation is being blamed for the huge increase.
The original estimate was prior to the pandemic and included no inflation escalators.
“The biggest driver of the cost increase compared to the original estimates is the ongoing inflation,” said Ryan Brown, Chatham-Kent’s director of public works.
Other reasons given by administration on why the costs have increased is because the original estimate did not include items such as a new transformer and other utilities, furnishings, and contingencies.
The $2.6 million shortfall will be funded with a payback plan in the 2024 multi-year capital budget.
The new public works garage will be built on Creek Street in Chatham, just off of Park Avenue.
