Increased Tariffs Cause Budget Overrun for Confederation Bridge Project in Smiths Falls
A Slightly Heftier Price Tag for Confederation Bridge
The rebuild of Confederation Bridge in Smiths Falls has got a bit pricier than anticipated, bumping the total cost up to $2.26 million. An extra $159,000 has been added to cover unexpected tariff costs and extra lighting.
City council kicked in the additional funds after getting wind of the new expenses at a combined committee of the whole and council meeting on May 5.
Paul McMunn, director of public works and utilities, notes in his report, "At the time of the award, StructureCraft's pricing proposal was not impacted, nor reflective of Canada-U.S. trade tariffs, as they were not imposed at the time."
The design originally called for Canadian timber manufactured in the U.S., but the trade tussle between the two countries inflated the timber cost to $66,000. Instead of bearing the brunt of both tariffs, the wood will now come from a Canadian manufacturer for $42,152.
McMunn also mentioned challenges with steel prices. "Manufacturers are holding back and bracing for potential increased tariffs, which is messing with the supply chain and costs associated with those materials." This led to an approximate extra $35,000 for the steel.
The majority of the additional costs, about 57%, come from an upgraded lighting feature for the arch. The original design included handrail lighting, but there was interest at the April 28 committee meeting to include upper lighting for an additional $81,400.
Mayor Shawn Pankow puts it, "We're building an experience here. We're creating something lasting for our community, and having the lighting helps us create a more enjoyable experience."
The extra funds are suggested to be pulled from the town's property tax-based reserve. McMunn highlights that Smiths Falls garnered $495,000 through Natural Resources Canada's Green Construction through Wood Program, which will help with the increased costs.
Breaking Down the Increased Costs
The increased costs for the Confederation Bridge replacement are primarily due to three significant factors: tariffs, steel prices, and additional lighting features.
- Tariffs on Lumber and Steel – The bridge project saw additional expenses due to tariffs imposed on lumber and steel, specifically tariffs on softwood lumber that gets processed into glulam timber in the U.S.[1]
- Steel Prices – While the specific impact of steel prices on the total cost is not specified, they are mentioned in conjunction with tariffs as a contributing factor.[1]
- Additional Lighting Features – City council opted to add high arch lighting to the bridge, which added an extra $81,400 to the project costs.[1]
The Final Tally
The total project cost now stands at over $2.6 million, with approximately $77,000 of the extra costs attributable to tariffs alone.[1] The town has received $495,000 from Natural Resources Canada to help alleviate these costs.[1]
The unexpected tariffs on lumber and steel for the Confederation Bridge rebuild inflated the project costs by around $77,000. High arch lighting, added due to council's interest, accounted for an additional $81,400. The steep rise in steel prices also contributed to the increased costs, though the exact impact is not specified. The town's property tax-based reserve is suggested as the source for the extra funds needed, with some alleviation coming from $495,000 received from Natural Resources Canada's Green Construction through Wood Program. In summary, tariffs, steel prices, and additional lighting features are the primary contributing factors to the $2.6 million total project cost for the Confederation Bridge replacement.
