Havelock Awards AON Inc. Development Agreement to Build 128-Bed Long-Term Care Facility

The township of Havelock-Belmont-Methuen has awarded AON Inc. the right to build a 128-bed long-term care facility in Havelock after their March 7 council meeting, subject to provincial government approvals.

Photo courtesy of AON Inc.

AON was the successful bidder in a public RFP process that closed on Feb 17.

The future site is located at 628 Old Norwood Rd. where construction must begin by Aug. 31 or it will be cancelled, this is under the requirement of Ontario’s recently announced supplemental construction funding initiative aimed at getting construction started soon on 10,000 new LTC beds in the province. The building is roughly 86,355 sq ft. Projections for the project’s completion are slated for September 2025 according to Ray Barlow, AON Inc. Vice President.

“We’re excited to work with the town of Havelock to launch the 128-bed long-term care home,” he said. “The town has backed us on the project and the Ontario Ministry of Health and Long-Term Care will be providing direction on the next steps in the process.”

The original development agreement was made back on Nov. 12, 2020, with AON tendering the project a month later. In late January 2021, building costs had risen, particularly in lumber, electrical and mechanical products. The rising costs and severe supply chain constraints made the project untenable given the unreliable building supplies situation.

“The ongoing-pandemic supply chain and inflationary cost pressures realized tremendous encumbrances to the tendering process, as set against the MLTC’s 2020 Capital Development Policy,” explained Barlow. “Like many other long-term care operators in Ontario looking to build long-term care facilities during that time, progress was halted due to the ongoing pandemic and supply chain issues, and the realization of the beds award was stalled.”

The project application has been resubmitted to the Ministry of Health and Long-Term Care for final approval, with the full endorsement of the Havelock-Belmont Methuen Township council.

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