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Private savings a pipe dream in Calgary

Contracting out water main replacement has been an expensive mistake for the City of Calgary.

According to the city’s waterworks department, in 1998 private contractors charged an average of $619 per meter of pipe replaced —

30 per cent more than the $472 per meter it cost public sector workers to do the job. As a result, the city paid $1.35 million extra.

Under pressure from CUPE, the city has cut back contracting out for 1999, but is still handing $4.5 million worth of main replacement to private contractors. This will cost the city over $1 million more than if public sector workers did all the work.



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