Budget contingency is there for a reason. Look at the recent reports on Spadina; the estimated construction costs are coming in high. Part of this is that the price index for this type of construction has been very high in the 2-3 years since it was costed. Look at the last 3 complete years - the increases were 12.28%, 10.24%, and 5.09%. That's an increase in construction cost of 30.1% in only 3-years. This could eat the entire Spadina contingency right there, even without any changes in design, unanticipated geologic conditions, contaminated land, etc. Eliminating contingency is a sure-fire way to exceed your budget.
This is a good point. However, LRT construction is not immune to cost overruns, either ... and I am not sure whether the announced funding for Finch and Sheppard E includes contingency. If not, then we should exclude contingency from the subway estimates, too, for the sake of consistency.
I think it's a bit of a cheat to use the Finch money (and there's no indication that the amount promised for Finch actually is enough to build that piece).
No, not a cheat: the announced funding is for Finch line from Humber College to Don Mills station. Since the "bypass" section east of Yonge won't be needed if Sheppard subway is extended to Agincourt, funding saved on that "bypass" can and should be applied towards the subway extension.
But ignoring Finch then your argument would be that it would cost $1.05-billion to build that.
And it's a fair argument. But $1-billion IS a lot. And what would we rather see it spent on? Personally I'd rather see that $1-billion spent on the Don Mills LRT. Eglinton to Steeles on Don Mills is 10.5 km; of which 2.1 km is already funded as part of Finch. So 8.4 km of LRT is needed north of Eglinton, which would cost only $504-million! The remaining 5-km to Danforth is a challenge, but if they could find a surface route (Donlands/Leaside Bridge), the 5-km could be done for $300-million or so ... say $850-million with upgrades at Donlands station. Isn't that a better use of the money?
Even Steve Munro is skeptical about all-surface option for Don Mills LRT. And even if (bold
if) such layout is feasible, Don Mills LRT without DRL would put more stress on Yonge / Bloor interchange and Yonge south.
The key to good transit in the Don Mills corridor is the eastern wing of DRL. But DRL will cost at least 2 billion, even just to reach Bloor. So, those 0.8B or 1B spent to upgrade the Sheppard corridor, are unlikely to be a deal-breaker.
Btw, those 2.1 km of LRT on Don Mills between Sheppard and Finch, might be a mixed blessing. If they take 2 out of 6 lanes of traffic there, but do not continue with futher LRT construction any time soon, that short LRT section might actually hinder the operation of 25 Don Mills bus.
Given the network benefits that would come with the longer Sheppard subway, I think that it is worth adding those 0.8 - 1 B to the bill. (My position on Eglinton is opposite, since a full subway solution there would incur much greater extra cost, at least 3 or 4 B.)