Essex County road paving projects impacted by inflation
Essex County Council is looking at the impact of inflation on road paving materials for upcoming projects.
The issue is on the agenda for Wednesday night’s meeting.
The report to council shows the inflation impact could be $680,000 for three projects approved earlier in 2022. The projects include work at the Sun Parlor Home and for the Town of Essex.
Administration indicates in the report that when tenders closed, the asphalt cement cost was $915.50/tonne, but the price at the time of paving is expected to rise to about $1,300/tonne.
Director of infrastructure and planning services Allan Botham tells AM800 News that asphalt cement is a petroleum product and it's impacted by the price of oil worldwide.
Administration recommends cutting $300,000 worth of paving, specifically 350m of County Road 27 north of County Road 8, and County Road 23 (Gosfield Townline to County Road 8).
County council is being asked to approve additional funding from the Rate Stabilization Reserve, up to $420,016, to mitigate the cost of escalating asphalt cement prices.
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