Politics  May 26, 2022 – 1:30 pm EDT

New housing units, power plant among cancellations after bids come in over budget

Kugluktuk MLA Bobby Anavilok and Uqqummiut MLA Mary Killiktee (right) asked the legislative assembly Wednesday why major construction projects in their communities had been cancelled. (Photo by Emma Tranter)

Rising construction costs have cancelled or delayed critical infrastructure projects across Nunavut, the territory’s legislative assembly heard Wednesday.

During question period, four MLAs queried cabinet on why projects previously approved in their communities have suddenly been halted.

Netsilik MLA Joseph Inagayuk Quqqiaq said housing units promised in Taloyoak, including two fiveplexes, still haven’t been built.

Housing minister Lorne Kusugak said although the tender for the Taloyoak units closed in March, all the bids came in well over budget, at around $1.1 million per unit.

“They were just all way too expensive,” Kusugak said. “The housing corporation just doesn’t have that type of money.”

This isn’t the first time in recent years the Nunavut government has cancelled projects due to rising costs. Canada’s rising inflation rate, high fuel prices and supply chain delays have all affected construction in the territory during the COVID-19 pandemic.

The government’s mandate, which was tabled in March and sets out priorities for the next four years, pledges to build 1,000 new housing units across the territory.

More than 3,000 new units are needed to accommodate housing demand in Nunavut, according to a 2020 report by the Nunavut Housing Corp.

Quqqiaq asked how the government’s mandate could still be fulfilled, given skyrocketing construction costs.

Kusugak said he is working with the private sector and trying to find “innovative” ways to lower the price of construction.

“We can’t do $5-million per fiveplex … This government doesn’t have that kind of money,” he said, adding the government still wants to build 1,000 units.

“That goal is achievable and we are working towards that.”

Bids submitted in March for construction of Sanikiluaq’s hamlet office, which was destroyed in a storm in 2020, were also rejected because they came in over budget, the assembly heard.

Community and Government Services Minister David Joanasie said because of this, the government will need to seek additional funding for the project. During the assembly’s last sitting, MLAs approved $13 million to rebuild the office.

And in Clyde River, construction of a visitors centre for the community’s Agguttinni Territorial Park was also cancelled because of high construction costs.

“It is very regretful,” Uqqummiut MLA Mary Killiktee said.

Environment Minister David Akeeagok said the government is working with the Qikiqtani Inuit Association on a joint project to get the visitors centre built.

In Kugluktuk, the community’s 50-year-old power plant needs to be replaced but MLA Bobby Anavilok said that hasn’t happened yet.

That’s because bids for a new plant came in well over budget too, said Craig Simailak, minister responsible for Qulliq Energy Corp.

Simailak did not have details on when that project could be built.

It is unreasonable for the Government of Nunavut to expect to set the price for the new housing unit cost. If officials believe they can deliver a cheaper per unit cost than the market bids, then the onus is on the government to act immediately to build the more affordable cheaper units. But cancelling projects and having no viable plan is not a responsible or accountable government. Previous housing scandals have shown that waste, delays, and corruption follow officials resorting to “innovative ways” outside of the competitive bid process.

The GN caused this problem a decade ago, the civil servants pretty well drove the small local contractors out of business. And it will not change, home ownership outside the regional centres is almost impossible now, and the GN reply and mlas give us more money federal gov.

But Bob, to award those 5.5 million dollar fiveplexes would be like enabling a substance abuser. Many contractors in Nunavut, their greed has gotten out of hand and they have become addicted to the illogical bids and contracts. The GN has finally smartened up and become financially prudent. The price gouging has got to come to an end. Ask almost any contractor in Nunavut how they are doing financially, and are they making any profit, and 95% of them cry poor. But then they have their million dollar mansions and antique car collections down south, along with toys in the north, that seems to speak volumes otherwise.

Sorry to burst your bubble Bob, but the GN doesn’t have a cadre of qualified carpenters, plumbers and electricians on staff who can jump in and start building houses. They, like the rest of us, are at the mercy of the local industry who always jack up their rates and prices when they see government coming. I am actually happy that the GN didn’t simply cave and agree to whatever outrageous terms were being demanded to get these contracts completed.

Why would anyone want to carry the cost of homeownership when the public houses are huge (compared to what I can heat anyway) and maintained without limits and fueled on a regular basis.

Why not build tiny homes to help alleviate homelessness. A fraction of the costs of regular units to make and O&M should be more affordable saving more to build more.

Forget about visitors centre, Nunavut needs housing! Maybe NTI and QIA can start using those royalties they collected from mining companies to build houses or access funds from Inuit Impact Benefits Agreement?

Surprise, building costs have risen significantly in the past 2 years! The solution to our current crisis is not to cancell builds but keep building. After all, didnt the GN grind millions of unbudgetted $$ to manage Covid? People are dying from a la k of housing too. Do you really think these costs are going to decrease in the 2 years it’s going to take to rebid the work?! Time to be reasonable and pay the piper for years of poor management at the GN.

Bring back the 512 Units from the 1980’s, nice small 2 bedroom Units Mandate that LOCAL Contractors and LOCAL People build them in every community EVERY community has the local skills to build these OR Buy Pre-Fabricated Homes from the South and Ship them up. Even if you pay $50K shipping per house it will still be WAY LESS than $1.1 Million per house The Nunavut Government has to change the way they currently build/buy homes, the current system does NOT work

You know, realistically speaking, The housing crisis in Nunavut is an epidemic proportions…..and is the leading cause of most social issues, from addictions to low education levels. Honest to god, they need to treat this as a crisis…..and in a crisis you gotta put all efforts to fixing this issue. You think TB becomes prominent without a housing crisis? Its nice that they spent money protecting themselves from Covid, even going as far as paying 14 day hotels for people. Do it for the housing crisis now, seriously, its a social issue. Its a health issue. Its a living issue and needed to be dealt with forever ago.

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