Construction of new long-term care home, archives & museum enters final stage
Cobourg, ON – October 7, 2024 – The construction of the new Golden Plough Lodge & Northumberland County Archives and Museum (GPL & NCAM) has reached a significant milestone. The project is now 75 per cent complete and firmly moving into the final phase of construction.
"We are entering an exciting phase of the project as finishing contractors begin work onsite,” states Director of Public Works Denise Marshall. “Northumberland County and its construction partners are determined to deliver a facility that residents, staff, and the community will be proud of.”
Initially launched in December 2020 with a projected completion date of December 2022, nation-wide challenges in the construction sector stemming from the global pandemic have impacted original projections. Factors such as material cost increases, skilled labor shortages, high interest rates, inflation, supply chain disruptions, and fluctuating oil and gas prices have required adjustments to the timeline and budget.
Following constructive negotiations, Northumberland County and contractor Matheson Constructors have reached an agreement on an updated budget and schedule to ensure the successful delivery of this vital community project. The revised occupancy date is set for June 24, 2025, at which time furnishing, set-up, and touch-ups will take place. Residents are expected to move into the new facility in the fall of 2025.
There is also a revised project budget. This budget adjustment incorporates additional funds for contractor and subcontractor work, project administration and design changes, as well as elevated interest rates on financing, for a revised total project budget of $145 million, up from $115 million. The County will fund these increases through a financing arrangement with Infrastructure Ontario as well as a draw from reserves. Staff will provide a report on the breakdown of this costing at the December meeting of the Public Works Committee, following a 60-day period requested by the contractor due to commercial sensitivity.
This amended budget reflects current economic conditions. In 2022, the Province introduced a program specifically aimed at mitigating the widespread cost escalations for construction of long-term care facilities, so that cost would not become a barrier to the launch of these critically required capital development projects. While the Golden Plough Lodge redevelopment project, launched in December 2020, predates the eligibility period for this program – which is limited to projects starting on or after April 1, 2022 – the pressures created by the current economic environment are nevertheless clear.
"While facing unforeseen challenges, Northumberland County has ensured diligent management of the project's financial responsibilities, ensuring all invoices have been promptly addressed throughout the lifespan of the project," states County Warden Brian Ostrander. "In the face of industry-wide cost escalations, Council has authorized an updated agreement as necessary to ensure compensation for subcontractors and the delivery of this vital facility. With this agreement now in place, the County is fully focused on the final outcome: a facility that meets the evolving needs of long-term care residents, responds to increasing local demand for long-term care spaces, and – through new museum and archival amenities – supports the preservation and promotion of Northumberland’s cultural heritage."
For more information about this project, please visit Northumberland.ca/ GPL_NCAM.