It’s going to take longer to reduce the local waiting list for affordable housing in Chatham-Kent now that the contractor for a stalled modular housing project has been given the boot.
It’s going to take longer to reduce the local waiting list for affordable housing in Chatham-Kent now that the contractor for a stalled modular housing project has been given the boot.
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A decision by Chatham-Kent to terminate a contract for BECC Construction Inc. for the construction of a three-storey, 27-unit affordable housing complex comes as housing officials have been scrambling to find permanent accommodations for nearly 100 people displaced by a fire Aug . 25 at a municipal-owned housing complex at 99 McNaughton Ave. W.
The unfinished affordable housing complex is located at 101 McNaughton Ave. W., just steps from the fire-damaged apartment building at 99 McNaughton Ave. W.
The municipality issued a media release stating the project initially was awarded to Toronto-area BECC Construction Inc., for both the design and construction, and was scheduled to be ready for occupancy by early 2023.
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“BECC has not met contractual obligations, and as a result, Chatham-Kent has ultimately decided to end BECC’s right to continue the contract,” said the release. “Construction work will be resuming once a request for proposals (RFP) has been released and a qualified company is selected to take over the remainder of the project.”
Once a successful bidder is chosen, they will assess the project and present administration with a final revised timeline for completion, the release added.
When asked when issues first began with the project, municipal spokesperson Eric Labadie said, in an email: “Concerns arose when it was clear the project would not meet the original project timelines outlined in the contract.”
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He added Chatham-Kent tried to work with BECC to see the project, which involved newer technology with modular housing, completed.
“However, after trying to work with BECC, it eventually became clearer that the best approach was to terminate BECC’s right to complete the project under that contract, and seek a new company to bring this greatly needed housing to completion,” Labadie said.
The price tag for the project was $8 million when it was in the planning stages in late November 2021.
Labadie said there hasn’t been a financial loss on the project at this time.
But, he added, the municipality “will not know if there will be any potential cost increases until the results of the RFP for the new contractor are obtained.”
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Labadie said the matter is in a legal proceeding and, as a result, no further comments about the potential financial implications can be provided at this time.
The Chatham Daily News has contacted BECC Construction for comment.
When asked what kind of setback this creates in trying to provide affordable housing, especially with the fire at 99 McNaughton St. W., Labadie said the 27 units are being built for seniors.
“There are 293 seniors currently on the centralized waitlist, so 27 of those will need to wait longer than originally planned for occupancy,” he said.
The centralized waiting list was at 1,250 at the end of August, which included 293 seniors, 384 families and 573 adults waiting for one-bedroom units.
Labadie said there is no correlation between the two buildings.
He noted even if the 101 McNaughton Ave. building was completed at the time of the fire, “it would have already been occupied, so it would not have any impact on dealing with the issue with the fire and finding the current 99 McNaughton Ave. residents housing.”
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