Delegated authority allows staff to approve tenders if the overall project remains under budget

Luke Edwards

Grant Haven Media

Norfolk councillors have given staff more leeway for capital budget reallocations within bundled projects in an effort to reduce costly delays.

The changes will allow staff to move forward with tenders that are over their individual budgeted amount if they’re in a bundled package and the total tender amount remains at or under budget. Previously they would have to get approval from council for a budget amendment, leading to delays.

“These delays have real impacts. They can affect construction scheduling, contractor availability and our ability to advance time sensitive capital projects efficiently,” said deputy treasurer Chris Everets.

The staff report offered a hypothetical situation where there was a project with two aspects requiring their own individual tenders. The total budget was for $1 million, split between the two tenders: $700,000 for the first, and $300,000 for the second. In this hypothetical, the bids come back at $450,000 for the first and $400,00 for the second. So even though the total project comes in under budget at $850,000, staff would require a budget amendment from council because the second part is over its individual budget.

The situation unfolded in reality earlier this year, the staff report said.

“A road reconstruction tender returned under the overall approved budget, but one project exceeded its individual budget allocation, requiring a report to council before award,” the report said.

This can be particularly problematic in the tender-heavy spring, when municipalities are working hard to get their summer construction projects underway.

“Time lost awaiting council approval may materially affect the County’s ability to advance capital projects efficiently,” the report said.

While supportive of the idea, Coun. Chris Van Paassen wanted to ensure there were some protections in place.

“Are there any guardrails on what gets bundled?” he said. “I think this is a great policy but I’d hate to see a bundle of three tenders where one is road paving, another one’s road paving and the third one is a new car for the deputy treasurer.”