FOR IMMEDIATE RELEASE – January 26, 2022
Calgary Construction Association Responds to Green Line Board Q1 2022 Report, Raises Concerns About Budget Escalation, Project Management
Calgary, AB – Yesterday’s report by the Green Line LRT Board to City Council’s Executive Committee echoed concerns that the Calgary Construction Association (CCA) and industry experts have been highlighting for years. Namely, the comments by Board Chair Don Fairborn highlighting a “low level of confidence” that the first stage of the project could be done within the current budget come with disappointment but no surprise.
Cost escalations, supply shortages and a limited labour workforce are certainly more recent issues that are currently affecting the greater construction industry. However, project cost overrun concerns are not new and have merely been amplified in the past two years. The reality is the Green Line LRT project has been mired by numerous delays, cancelled procurements, and missed construction windows – failing to capitalize on a better cost climate. Moreover, despite many assurances to the contrary, experts in our industry know firsthand the extremely high risks tunnelling downtown provides from a cost and schedule perspective.
The CCA remains concerned that the Province of Alberta’s unilateral assistance on a large, bundled mega-project will also substantially increase the cost of the project and ensure that only foreign consortiums can oversee the project. The alarming reality is that the recent decision to reverse the course of smaller packages has effectively not only deferred obtaining cost certainty on the less complex leg of the line but has also prevented getting local companies to work on this shovel-ready piece of the project now.
Projects like the Green Line LRT are for Calgarians – and should be built and managed by Calgarians. We remain hopeful that the Green Line LRT Board can engage with our industry and work to achieve a project on time and within a realistic budget.
The CCA and its members have been e