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Capital Line LRT

Edmcowboy11 said:
They really have to figure out what to do differently to lessen the costs of this and all future LRT projects. Even though the question has been asked in the past. I would like to know why construction for the LRT is so expensive. Is there anything that we can do here in Edmonton that would lessen the costs but not sacrifice the quality and scope of the projects.
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Because its built under a p3 model. Certain economic minds will say that limits risk to the city, but it also means that you are just monetizing the risk up front.
 
Not a P3, it’s design build project delivery. No operations, maintenance or project financing by vendor. I believe only VLSE was built on a P3 delivery model in Edmonton
 
northlands said:
Not a P3, it’s design build project delivery. No operations, maintenance or project financing by vendor. I believe only VLSE was built on a P3 delivery model in Edmonton
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VLW is a P3, although there's no operations and maintenance component. I have no idea how that works.
 
Yeggy said:
Translink is contracted to operate the west.
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TransEd, or something else? What I meant to say was that Marigold is partially financing the project in a P3 arrangement, but won't operate or maintaine the line. The operations is being contracted by the city separately.
 
CplKlinger said:
TransEd, or something else? What I meant to say was that Marigold is partially financing the project in a P3 arrangement, but won't operate or maintaine the line. The operations is being contracted by the city separately.
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Sorry yes TransEd, they will be operating the entire valley line
 
Yeggy said:
its a p3. The price is the price, the city doesn't manage the project.
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Huh?

A) this is a design build contact, specifically a CMAR (construction management at risk) procurement; not a P3.
B) the city doesn’t manage the project, but they are the ones who can alter the scope of the project since, you know, they own the project?

Typical of many on this sub, just blame P3’s, apparently even when they aren’t used.
 
Kosy123 said:

Ooof seems like we're not the only ones facing cost overruns
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All large infrastructure projects are facing the same issues: higher material costs, rising labour market pressures, and a lack of skilled workers. There’s most likely going to be a large reduction in capital projects until costs subside, and the construction industry reduces capacity.
 
Less people are entering the trades. The best workers generally follow the money now. I don't see how a reduction of spending is going to improve the future capacity of the construction industry. I think people are just going to need to get used to modern price changes. It's not my fault that parents pushed their children away from these industries for decades.
 
Barnaby said:
Less people are entering the trades. The best workers generally follow the money now. I don't see how a reduction of spending is going to improve the future capacity of the construction industry. I think people are just going to need to get used to modern price changes. It's not my fault that parents pushed their children away from these industries for decades.
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I meant moreso that governments will wait until the construction industry saturates. There are so many construction projects that were started during COVID that most design - build bids only have 2-3 consortiums at max. I would think governments will wait until that number reaches 5 or 6. Costs will be much lower amid higher competition and stronger consortiums.
 
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