Thank you, Madam Chair. The department administers contracts on a huge scale from small standing offer agreements, sole-sourced contracts for small amounts of money like $25,000, $30,000; $5,000 and up. We also do major builds such as the East Three School and the new office building in Yellowknife. We have change orders on a regular basis on any number of these types of things, these types of contracts.

In particular I can talk a little bit about the teardown for the school in Inuvik. We have a contract which is well within budget. There are going to be some change orders on that building. We had an assessment on that building that identified all the contaminants in the building, all the things that needed to be taken into consideration when doing the demolition of that building. We awarded that assessment contract to a local vendor here in the Northwest Territories who did that work. Based on that work, we went out for a request for proposal and got a number of bids. We awarded the contract to the lowest bidder who met all the conditions of the request for proposal and moved forward. Then once demolition began, it became obvious that there were a number of items that were not identified in our original assessment by our first contractor. As a result, we are going to experience

some change orders on that. We believe that all the change orders that are going to come on that, based on the formulas provided by the proponent on removal of certain items, we’re going to be well within the budget that was allocated for that project.