Extreme disappointment at significant cost overruns on new West Kelowna City Hall

Mar 6, 2025 | 10:58 AM

The mayor of West Kelowna says he’s “extremely disappointed” with the $6 million cost overrun on the new City Hall building.

In a statement, Gord Milsom said these sorts of situations could not continue and the city is to implement improved project management protocols.

He suggested the joy of having the new building had been overshadowed by the $24 million final cost, as opposed to the initial estimated $18 million price tag.

“We have this wonderful, much-needed complex, which provides centralized government services and a bustling civic centre area for our community,” Milsom said. “Yet, it has been overshadowed by these overruns, and we must implement policies and best practices that will keep future projects on track.”

He said Council and the new Chief Administrative Officer Ron Bowles are directing the City to implement improved project management best practices.

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Bowles said while many factors contributed to the overruns he added they would press forward with the engineering, budgeting, reporting and other project management best practices.

The City listed many factors that contributed to cost escalations from the pre-planning in 2019 to completion in 2024.

These included scope changes such as adding a library and other tenants as well as long-duration global supply chain issues, which occurred during COVID-19, and high inflation.

Also, there were power supply design and construction delays as the initial design was not feasible and had to be corrected. There were delivery delays and the ultimate bankruptcy of the mass timber manufacturer, which added significant time and cost.

To further complicate matters there were two wildfires and a Highway 97 landslide, north of Summerland, which impacted construction schedules. Also, several items that were initially de-scoped, such as landscaping, had to be reconsidered to effectively and aesthetically complete the project.

by Vernon Matters Staff

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