Pricing error briefly stalls Erin roads garage project

GUELPH – It was a case of whiplash for a new Wellington County roads garage in Erin at a June 25 county council meeting, as politicians voted to pause construction, only to switch lanes and green-light the project later in the same meeting.

Councillor Earl Campbell put forward a successful motion to defer granting the job of building the garage to Waterloo-based Dakon Construction after noting the wrong price was presented to council.

The $13.23-million price tag was $61,972 higher than the correct price of $13.16 million.

“This [council] of 16, we’re making a $13-million decision on incomplete and inaccurate information,” Campbell said.

He later added, “We all deserve the information up front before any decision is made.”

Councillor and former county warden Andy Lennox said the error was “very disturbing” and called for accountability.

At a roads committee meeting earlier this month, Campbell requested “backup documents” to be provided for the job, which provide councillors with the minutia and justification behind a price.

“Thirteen days later, on Monday of this week, that data was released with a correction to the total bid amount, reducing it by $61,972,” Campbell told council.

He said the short notice, leaving much of council out of the loop, was unacceptable.

Campbell also noted a typo overstating savings that didn’t exist for electrical work.

“We’ve got wrong figures here,” councillor Steve O’Neill added. “[It] needs to be looked at closely.”

The discussion echoed another from 2025, when Campbell and councillor Mary Lloyd complained council hadn't been given adequate financial details about the Erin and Arthur garage projects.

Dakon was picked by council last year as construction manager for the 32,000-square-foot roads garage at 9506 Wellington Road 124 in Erin, lining the company up to complete the job.

The garage serves as a base for road crews and equipment, and will have five vehicle storage bays, a wash bay for snowplows, offices, and salt and sand storage.

The overall project price – construction, fees, furnishings, permitting and a contingency – rings in at just under $17 million. The county has budgeted $18.41 million for the project over three budget cycles since 2023.

In an unusual turn, county CAO Scott Wilson asked council to reconsider its deferral earlier in the meeting and accept the revised Dakon Construction price.

Wilson made the plea after conferring with Dakon Construction VP and co-owner Ryan Turk, Grinham Architects owner Lloyd Grinham – the duo behind the recently opened Arthur roads garage – as well as county construction manager Kevin Mulholland.

“I’ve been in this business a long time, and I don't recall ever having asked council to give further consideration to an issue,” said Wilson, who has been CAO since 1998.

He warned pricing could change by September, following council’s summer recess.

“The longer we delay, the less reliable those prices will be, the more we’ll likely be into winter construction, which will be adding to the cost,” Wilson explained, adding “it’s certainly up to council.”

Turk underscored the point, telling council pouring 1,600 cubic metres of concrete for the foundation in winter, plus the heating to cure it, will fetch a premium.

“We were supposed to break ground in the fall of last year; we've had a number of challenges with municipal approvals for … our permit,” Turk said.

“We’re at a point now where we’re ready to go.”

Turk attributed the price change to removing two parts of the project: a salt dome is no longer being demolished and a second entrance to the property was completed by the county.

Councillors Jeff Duncan and Doug Breen advocated for moving forward with the job at the revised price.

“I will back down on the deferral,” Campbell said. "I’m not trying to delay the project, I’m not trying to stop the project."

Council reversed its decision to defer and voted to accept Dakon Construction’s revised $13.16-million price.

Warden Chris White said the incorrect figure brought to council is an “absolute genuine concern” and would be looked into.

“I hope there’s no mistake about who’s responsible for this issue; this lack of information getting to council is my responsibility,” Wilson told council.

He previously apologized to council in 2025 for not providing final figures for the Arthur garage, requested at the time by Campbell.

The Erin garage, now over 50 years old, is one of eight in the county, which are grouped into four service areas.

The Brucedale garage, nearly 70 years old, is next up for replacement, planned for 2028-29.

The Drayton and Arthur garages were replaced with new buildings in 2019 and 2025, respectively.