Moncton's oldest fire station will be getting an interior overhaul, but at a higher cost. 

The Brandon Street fire station, one of five in the city, will be renovated after city council awarded a contract for the work Monday night worth $184,853. 

But that is more money, and includes less work, than planned after the only bid came in 60 per cent higher than expected for the building in central Moncton near Mountain Road.

City staff say it's just one example of the higher costs the city has been facing. 

A staff report to council about the fire station contract says Moncton has observed bid prices 10 to 30 per cent higher this year for construction and snow clearing than for similar work in 2021 or 2022.

"We've seen a drastic rise in prices across most of what we would consider capital construction items," Jacques Doucet, the city's general manager of financial services, told councillors Monday. 

A busy construction market, increased government infrastructure spending that's tied up contractors, skilled labour shortages, and uncertainty about material costs are among the factors inflating costs, Doucet said. 

Doucet said it's not unique to Moncton. 

"What we're seeing here is also what the rest of the country is seeing as well."

The work at the fire station, built in 1960 and last renovated in 2001, was expected to include replacing windows, kitchen appliances and cabinets.

The only bid, from Avondale Construction Ltd., was for $260,130. That was well above the city's estimate of $140,000. 

Councillors asked staff why only one bid was received and why it was so much more than expected.

Alexandre Binette, the city's general manager of operations services, said the city has had difficulty with bids that include carpentry work.

"The market is very saturated," Binette said. 

City staff looked at ways to cut the costs before bringing the contract to council, he said.

Replacing 14 exterior windows was removed from the project. Staff negotiated with the contractor to remove smaller costs. Binette said one example was that contractors would use the fire station washroom instead of bringing in a portable toilet.

The changes shaved $75,276 from the cost, bringing it down to $184,853.

"This is as good as they felt they could bring it down while still completing this renovation," Binette said.

Staff indicated they will come back to council in the future to address the windows that were supposed to be done.

Councillors unanimously voted to approve the tender.

Doucet said he expects to raise the issue of higher costs later this fall when the city considers its 2024 budget.