Ontario Construction News staff writer
The City of Hamilton’s Office of the Auditor General (OAG) has completed an audit of the Southcote Road capital project contract.
The project was awarded in August 2022 for $13.32 million and completed in 2024 at a final cost of $15.82 million, an increase of $2.5 million, or 19 per cent, according to the City of Hamilton’s Office of the Auditor General (OAG).
The audit found governance and oversight processes were informal and underdeveloped, contributing to problems with scope management, change management and contingency planning.
Inadequate budget monitoring and job-cost reporting also limited the city’s ability to identify and respond to rising costs. The review identified significant communication gaps within Public Works and between the department and Procurement, resulting in an avoidable error during tendering.
“While the project was completed, our audit found gaps in early planning, change management, documentation and financial tracking that made the work more complex and contributed to higher costs,” Auditor General Charles Brown said.
“Management has already taken steps to strengthen how infrastructure projects are delivered, and these recommendations are meant to support continued progress toward clearer, more consistent project oversight.”
The Southcote Road project involved reconstruction and underground infrastructure servicing along the Southcote Road–Garner Road corridor to Highway 403 in Ancaster. The work covered approximately 1.5 kilometres and included road construction, watermain installation and stormwater infrastructure.
City management requested the independent review to examine how the project evolved and assess whether it was delivered in a manner that achieved value for money.
The audit report is available through the city’s meeting agenda and supporting documents.
