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Aug 25
Phase 2 main building construction for Children’s Hospital of Saskatchewan to begin in September

(Saskatoon) - Saskatoon Regional Health Authority has approved the Award for Children's Hospital of Saskatchewan (CHS) Main Building Construction Contract to Graham Construction and Engineering LP, and will enter into a contract in the amount of $214,221,684.

CHS Artist RenderingToday's award, which follows the approval of the recommendation from the Ministry of Health, will see phase 2 construction of the maternal and children's hospital's begin in September.

"Today is an exciting day for our province and for this very special project," says Minister of Health Dustin Duncan. "Construction of the main building will begin in September on this state-of-the-art hospital that will provide Saskatchewan children and families with the highest quality of care in the most comforting environment possible."

The recommendation to award construction services to Graham Construction came after a rigorous tender process and extensive evaluation of proposals from three pre-qualified bidders.

"I am thrilled to see the team's hard work and diligence result in this historic moment. We are confident that the experience and innovative techniques of Graham Construction will serve us well," says Mike Stensrud, Saskatoon Regional Health Authority Chair. "We thank all the contractors who participated in this process. The evaluation team had a significant amount of work to do to get us to here, as the bids were all relatively close in price and timelines. I am sure all the families involved in the design of this hospital, alongside our staff and physicians, who have invested hundreds of hours to bring the project to this point, will be as excited as I am to see that first crane arrive on site in a few weeks."

Graham Construction and Engineering LP submitted the lowest base bid of the three with about a 6% difference between the highest and lowest bids. The low bid was approximately 10% higher than projected pre-tender cost estimates. Some of the potential contributing factors included pricing adjustments due to current market conditions, including major project construction activity in Saskatchewan and availability of skilled construction labour, and construction site constraints and logistics including minimal construction material laydown area. These, along with the complexity of hospital design itself, increased the time to build which further added to the cost of construction.

CHS Construction SiteWith confirmation of the cost of construction for CHS main building, the total project cost of the hospital is forecasted at $285.2 million, with $235.5 million (82.5%) coming from the provincial government, $21.4 million (7.5%) from interest earned by Saskatoon Health Region investments of the hospital's initial capital, and $28.3 million (10%) funded through the Children's Hospital Foundation of Saskatchewan capital campaign. This reflects a new $24.9 million funding commitment from Children's Hospital Foundation of Saskatchewan that expands its total capital fundraising campaign from $50 million to $74.9 million.

"The Children's Hospital Foundation of Saskatchewan is eager to see construction continue on the new Children's Hospital of Saskatchewan," says Greg Yuel, Board Chair of the Children's Hospital Foundation of Saskatchewan. "This is an important step forward for Saskatchewan children, mothers-to-be, and their families. This Foundation is committed to fulfilling its mandate to ensure that this new facility has everything it needs to ensure quality care and services for our youngest citizens."

The Foundation's capital commitment includes $3.4 million in hospital construction enhancements, such as the child life program space and the addition of a family theatre.

"From day one, the Children's Hospital Foundation of Saskatchewan has had one goal; to ensure that a dedicated children's hospital would be built for our province's children, moms-to-be and families," says Brynn Boback-Lane, President and CEO of Children's Hospital Foundation of Saskatchewan. "Like other jurisdictions in Canada and throughout the world, a dedicated children's hospital adds to the excellence and quality of life for those that require its very special services and programs. The Children's Hospital Foundation of Saskatchewan is grateful to each person and business who has stood by this vision. This project took the investment of both funds and time, and our Foundation cannot think of a better way to strengthen Saskatchewan than by taking care of our next generation."

"Children's Hospital Foundation of Saskatchewan has been an integral member of our steering committee and has collaborated with us on this hospital during each and every step," says Jackie Mann, Executive Sponsor for Children's Hospital of Saskatchewan and Vice-President with Saskatoon Health Region. "Their continued partnership and commitment is fundamental to our ability to create the facility Saskatchewan families, and our staff and physicians, have been asking for. We extend our deep appreciation to the Foundation and to their committed and passionate donors from across the province for their unwavering support. They continue to demonstrate their mandate of improving the health of children, pregnant women, mothers and families across this province."

A letter of intent will be issued to Graham Construction and Engineering LP immediately, and it is expected that their construction resources will mobilize in the next few weeks. The Graham Construction bid for substantial completion is estimated for early 2019. An additional six months is forecasted to fully commission the complex building systems and equipment and prepare for hospital operations. The opening of the hospital is projected for later in 2019.

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