Reports to Council

Matt Kachel, the City’s Infrastructure Delivery Divisional Manager, provided Council with an update on the progress and financial performance of the Kamloops Centre for the Arts capital project to date. High-risk unencumbrance, excavation, and shoring activities are now complete, and the project is transitioning into the initial stages of building construction, with foundation work set to begin.

The project team has maintained construction momentum and kept the project aligned with its planned schedule and budget, and the project is currently forecast to be approximately $5 million under budget. Because borrowing is based on the amount required each year to fund construction, improved forecasting allows annual borrowing requirements to be adjusted as risks are retired and savings are confirmed. Over the life of a project of this scale, these adjustments can result in meaningful cumulative debt-servicing savings.

The Integrated Project Delivery model supports this level of review by bringing designers, builders, and trade partners together to determine who is best positioned to complete specific work efficiently and to a high standard. The partners deliver their work through a combination of self-performed services and open, transparent, and competitive tendering, and each contractor must provide detailed cost transparency and tender subcontracted work in a manner consistent with the City’s procurement practices. A number of tendering packages are being developed and are anticipated to proceed as part of the next phase of construction procurement.

If construction continues as planned, with risks mitigated or retired and tender results continuing to perform favourably, the final contract value may be reduced below the current target and potentially below $200 million. Under the Integrated Project Delivery model, the contractor does not automatically retain confirmed savings. Instead, they return to the project table, giving the City options that are not typically available under traditional delivery models, including reducing the contract value without reducing scope or accepting lower-quality alternatives. The Integrated Project Delivery model increases transparency, strengthens accountability, and creates additional opportunities for specialized firms, including local companies, to participate in the project. Because each major partner is contractually connected to the City and to one another, each party’s success is directly tied to the overall project’s success.

View the full memo.
View the presentation within the Council meeting slide deck.
Contact for further information:
Matt Kachel | [email protected]

View the full Council Highlights for this meeting