City shifts contingency budget for project

Summary#

Montréal city council adopted a position to transfer $121,873.50, taxes included, from construction incidentals to professional-services contingencies for work at the Ateliers municipaux Viau, 2269 rue Viau, in Mercier–Hochelaga-Maisonneuve. This is a budget transfer, not new spending; the agglomeration council makes the final decision at a later meeting.

  • The transfer would raise the professional-services contingency budget to $261,249.63, taxes included, and reduce the construction contract’s incidental budget by the same amount.
  • The services contract is with Bouthillette Parizeau inc. and Lafontaine Langford Architectes s.e.n.c. It was originally awarded through public call for tenders 23-19867; one bid was received. The materials do not say whether it was the lowest compliant bid.
  • City staff say the extra contingency is for professional services linked to construction changes caused by unexpected site conditions and other project issues.

What it means for you#

  • City and agglomeration budgets: The decision reallocates existing project funds; it does not add to the project’s total authorized budget.
  • Residents and taxpayers: It creates no new tax, fee, benefit, or direct service for residents.
  • Municipal operations: The work concerns ventilation and gas-capture systems at a facility that supports vehicle maintenance, including for Montréal’s fire service. The decision does not itself change those services.

Money#

The proposed transfer is $121,873.50, taxes included ($111,286.75 net of tax rebates), with no additional spending.

  • The amount is split between the Ville centrale: $60,814.88, taxes included ($55,532.09 net of rebates); and the agglomeration: $61,058.62, taxes included ($55,754.66 net of rebates).
  • City staff say the source is construction incidentals that are not expected to be fully used.
  • Staff say the project may receive a provincial subsidy covering up to 34% of project costs, conditional on the relevant work being completed before March 31, 2026.

What is unclear#

  • The materials do not specify which future professional-service changes will use the added contingency, or how much will ultimately be spent.
  • The subsidy’s final amount and whether it will be paid are not stated.

Case for#

  • The transfer could pay for extra professional services arising from unexpected construction issues without increasing the project’s total budget.
  • City staff cite issues including contamination, hidden structural and roofing conditions, and work near a high-voltage line.
  • Keeping the facility operating is important to the city’s vehicle maintenance work, including fire-service vehicles, according to city staff.

Case against#

  • The professional-services contingency would rise to $261,249.63, which staff describe as 37% of the adjusted base contract amount.
  • The decision does not identify the specific future changes the added contingency will cover, making it harder to judge whether the amount is sufficient or proportionate.