One of the two groups that could bid for the reconstruction of the Halifax hospital withdrew from the process earlier this month due to concerns about the scope of the project in the face of ongoing challenges in the industry.
An EllisDon spokesman, who was pre-qualified to apply for the project as part of the EllisDon Infrastructure Healthcare consortium, confirmed to CBC News on Monday that the company had notified its intentions to the provincial government on June 16th.
“EllisDon withdrew from the Halifax Infirmary project due to the unprecedented escalation of costs, supply chain and labor productivity problems affecting the construction industry, which is irritated by the size and scale of the Halifax Infirmary project,” the company said in a statement.
The reconstruction of the hospital in Halifax is the largest part of the project of the so-called Queen Elizabeth II Health Science Center New Generation. This work also includes the construction of a new outpatient center in Bayers Lake (EllisDon won the contract for this project) and the renovation and expansion of Dartmouth General and Hants Community Hospitals.
In 2018, the new generation project was valued at $ 2 billion. However, with global material prices rising, labor shortages and inflation, this figure is unlikely to remain accurate.
The final offer will be reviewed this fall
The tender for work in the hospital was supposed to be awarded by the end of spring, but last week the province confirmed that the award was delayed by several months.
The government rejected requests for an interview with Prime Minister Tim Houston or Public Works Secretary Kim Masland on Monday. A provincial spokesman said in an email that the tender had been postponed to reconsider the scope of the project “and allow successful bidders to secure funding based on current market conditions. This includes, but is not limited to, the labor market, goods and supply chain availability. “
The statement said that the procurement process was continuing with the remaining bidder, Plenarary PCL Health, and that he hoped the final bid would be reviewed in the autumn. A public update will be provided at this time, according to the province.
Internal documents reported by the CBC last week hint at the challenges facing the scope of the hospital project.
The province rejected the proposed offer for a joint venture
The documents say that the population estimates used in 2015 to design the project have already been exceeded due to the recent population boom in Nova Scotia. As a result, the documents recommend adding 144 beds, four operating rooms and a new emergency department to the project.
A statement from EllisDon said that at the beginning of the year, they and PCL had proposed a joint venture to work on “what would be the best solution to address these challenges”.
“The ability to be a joint venture is crucial because it allows both EllisDon and PCL to draw on the combined strengths of their balance sheets, human resources and trading partners to carry out this critical project.”
EllisDon said the idea was rejected by officials from the province’s public construction department. A government spokesman confirmed that he had received the offer.
Opposition politicians, meanwhile, remain concerned about what is happening with the project.
The public needs more information, the opposition says
Critic of liberal public affairs Braden Clark said the fact that there was only one participant in the large-scale redevelopment, which included more beds, operating rooms and a new cancer center, was a “huge problem”.
“There is no competitive bidding at the moment,” he said.
“The only participant left at any given time will make an offer. You know, the government may say, “Well, we don’t have to take it,” but then you go back to the beginning and you don’t have a project. “
Clark said the Halifax hospital project was the “keystone” in the Tory government’s campaign promise to improve health care. Any problems with the project will affect the entire system in Halifax and the rest of the province, he said.
“We need to make sure we’re doing it right,” MLA said
NDP health critic Susan LeBlanc said the government was in a difficult position to try to continue the process with just one bidder and risk a non-competitive bid or pause the project to attract more participants and risk major delays in vital infrastructure. project.
“I am very clear about how much we need this hospital and how much we need better health services in Nova Scotia, so I do not want to say that we need to press pause, but I think we need to be sure that we are to we do it right, “she said.
LeBlanc said it made sense to re-evaluate things when new information emerged, such as the change in population forecasts, but she said the government should provide the public with more information about what it is considering and what it could mean for the project. .
When the QEII New Generation project is completed, it will allow for the closure and eventual demolition of the Centennial, Dickson and Victoria buildings on the campus of Victoria General Hospital in Halifax.
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