SWOX Council proceeds with construction management selection process for new municipal office, child carefacility and library; cost soars to $14 million

Debbie Kasman, Tillsonburg Post Correspondent

At its regular council meeting on Nov. 4, South West Oxford Township (SWOX) council voted to proceed with a construction management approach for its new municipal office, child care facility and library located west of Highway 19 on Mount Elgin Road. The new rough estimate, from design through to construction, is estimated to reach $13,966,212 plus HST.

The estimate includes allowances for 10 per cent design contingencies and 10 per cent construction contingencies, acknowledging that the project is still in the concept design phase and several elements will continue to be refined as the design progresses.

Updated concept drawings show a two-story model with a 2,350 square-foot library located on the north end of the lower level, a daycare on the south end of the lower level, and the municipal office with council chambers on the second floor.

A construction management approach allows the township to maintain control over design decisions, manage costs, and ensure that any savings achieved through competitive trade pricing are returned directly to the township.

Under the township’s purchasing policy, a formal Request for Proposal (RFP) process is required for the purchase of goods or services valued at more than $50,000. In accordance with this requirement, the township's selection of a construction manager will need to follow a competitive RFP process.

AEC Developments and WalterFedy, both located in Kitchener, Ontario, will assist the township in preparing an RFP for the pre-qualification of construction managers. This will allow the township to shortlist the top three to five firms based on experience, insurance, relevant project portfolios, and demonstrated expertise in construction management. AEC Developments and WalterFedy will also assist in preparing a second RFP for the shortlisted firms. This second round will focus on fees and hourly rates.

Once a construction manager has been selected, that firm will be contracted to work closely with the township and the design team throughout the remainder of the project.

The construction management services, including detailed design development, costing refinement, tender coordination, and project oversight, are anticipated to total up to $420,000 plus HST.

Staff recommend the construction management portion of the project be funded from the township’s Working Capital Reserve in 2026. This will support the development of accurate scope and costing before the township commits to construction. Once the detailed design phase is complete and final construction drawings and specifications are prepared, staff will return to council with a more refined project cost estimate and proposed financing strategy. Staff will also look into and pursue funding opportunities that may be available in 2026, including programs geared toward energy efficiency, low-carbon construction, and community infrastructure.

It is anticipated the full project cost will be funded through a combination of township reserves, sale of the existing municipal office, debenture financing, and, where possible, external grant funding.