UPDATE: Chatham-Kent Council approved a recommendation to award the transitional cabins project outlined below to Jayden Construction at Monday night's municipal council meeting.
It was passed during the consent agenda portion of the meeting without any further discussion.
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Previous story published October 19, 2024
The transitional cabins proposal for the homeless in Chatham-Kent is going to cost more because the original contractor can no longer take on the project.
A report going to Council on Monday evening noted the price tag will increase by $517,000 because of the change in contractor.
Council will be asked to award the contract to supply and install the 50 cabins, one community building, one washroom pavilion, one security cabin, and one utility cabin to another company.
"Now Housing was not able to meet the bonding requirement and therefore Administration was unable to enter into a contract and is now looking to the next ranked qualified tender," wrote Chatham-Kent Director of Municipal Housing Development Ray Harper in his report. "Jayden Construction’s proposal was the second highest scoring respondent to the RFP (request for proposal) and was only ranked second due to price of the submission in the evaluation process."
The municipality noted Jayden Construction is bonded, will be working with other local well known sub-contractors on the tiny cabins project, and is currently completing an affordable housing project in Blenheim.
The municipality is targeting June 1, 2025 for completion of the transitional housing project, two months later than anticipated.
The estimated annual debt servicing cost at four per cent interest is just over $388,000 and will be included in the 2025 budget update and adjusted in the 2026 budget update based on final costs and any upper level grants received.
"Council only funded the temporary shelter (Victoria Park Place in Chatham) to May 2025 so both operations and debt servicing need additional taxpayer funding in the 2025 and 2026 budget updates," noted Harper.
The tiny cabins will be built on municipally owned land at 378, 390, 392, and 396 Park Street in Chatham.