The project to build a new South Centennial Manor long term care home in Iroquois Falls has hit a financial snag.
Bids from two contractors came in 43% over the $45-million budget.
MICs Group of Health Services CEO Paul Chatelain says the Ministry of Long Term Care has seen similar overruns elsewhere.
“So what we’ve done is we’ve gone back to the contractors to do value engineering and look at reducing those costs,” Chatelain states. “It makes some significant savings, but we’re still looking at 40%.”
MICs is now in discussions with the Ministry of Long Term Care.
“They’d like us to move forward,” says Chatelain. “They want us to build here in Iroquois Falls, but I think they’re trying to look at increasing the construction funding subsidy that’s going to be identified in the budget this spring. Hopefully, that’s good news.”
That won’t cover the entire shortfall. Chatelain says fundraising will have to continue and new avenues of financing investigated.
