Kincardine council is being asked to approve an $11.8-million contract for upgrades to the municipality's water treatment plant as part of the broader Bruce Power Water Supply Project.
A staff report recommends awarding the contract to Baseline Constructors Inc., the lowest compliant bidder, in the amount of $11.77 million, including non-refundable HST, contingency and allowances.
The project came in more than $5.2 million over its approved budget. Staff say the increase is due to "increased contingency provisions, project allowances, lifecycle replacement components, and operational improvements incorporated into the final design."
According to the report, the upgrades will provide "increased operational flexibility, improved system resiliency," while supporting Bruce Power's long-term water needs and future growth within the municipality.
Bruce Power has confirmed it will cover its share of the additional costs under the existing Water Services Agreement. In a June 17 letter to the municipality, Bruce Power said it and Kincardine are "aligned with the accepted tender bids" and that "the parties agree to proceed to Phase 3 in accordance with the Water Supply Agreement."
The municipality's share of the water treatment plant cost overrun is estimated at approximately $2.2 million. Staff say additional draws from the Water Reserve Fund may require some future water infrastructure projects to be deferred.
Council will consider the contract award at its meeting Wednesday, June 24, 2026.
