Nova Scotia looks for ways to finish construction projects, despite rising prices

Public Works Minister Kim Masland says officials in her department are looking for ways to contend with rising construction costs while making good on needed community projects around Nova Scotia.

Documents obtained by CBC News show construction costs related to some school and hospital projects around the province are now well above their original budget.

The budget for the new École Halifax has jumped from $52.8 million to $63.4 million.

 The new St. Joseph's-Alexander McKay Elementary cost has risen from $31.3 million to $42.2 million.

The cost of the new École Wedgeport has grown from $20.7 million to $31.9 million.

A recent tender for work at the South Shore Regional Hospital came back $20 million over budget.

'Significant cost escalations'

Those projects, which are all at various stages, are going ahead.

In an interview last week, Masland said her department is seeing "significant cost escalations" in projects across the province.

"Nova Scotia is not immune to inflation right now," she said. "We're looking at global supply chain demands, we're looking at [a] labour shortage — which increases labour costs — we're looking at the cost of steel going up."

Even with those challenges, Masland said officials in her department are looking for ways to make sure projects on the books can go ahead.

She said that could include changes to project scope or phasing tender packages over time rather than all at once, for example.

"The most important thing for us is to make sure that we are delivering these infrastructure projects to Nova Scotians, because they are expecting them and they deserve them."

Inflation challenges

Inflation is proving to be a particular challenge with the province's largest construction project, which has yet to break ground.

Final submissions from the lone bidder of the Halifax Infirmary redevelopment are expected this week.

CBC has previously reported that the budget for that project could top $3 billion, triple what was first anticipated.

Colton LeBlanc, the minister responsible for major health-care infrastructure projects, has confirmed the budget for the project is higher, but will not offer further details until the tender closes.

Although government officials considered changing the scope of the Infirmary redevelopment, LeBlanc has confirmed the design of the project is the same as what was originally released to the public.

Nova Scotia Health interim CEO Karen Oldfield has said further construction projects could be required to meet the health-care needs of the province's growing population, which has outstripped the projections used in the original design plans.