Office of the Auditor General completes Audit of the Southcote Road Capital Project

HAMILTON, ON – The City of Hamilton’s Office of the Auditor General (OAG) has completed an audit of the Southcote Road capital project contract, which was awarded in August 2022 for $13.32 million and completed in 2024 at a final cost of $15.82 million, an increase of $2.5 million (19 per cent).

The OAG found that governance and oversight processes for the project were informal and immature, contributing to poor scope management, change management and contingency planning. Inadequate budget monitoring and job-cost reporting limited the City's ability to identify and respond to cost increases. The audit also identified significant communications gaps within Public Works and between them and Procurement, resulting in an avoidable error in the tendering process.

“While the project was completed, our audit found gaps in early planning, change management, documentation and financial tracking that made the work more complex and contributed to higher costs,” said Charles Brown, Auditor General. “Management has already taken steps to strengthen how infrastructure projects are delivered, and these recommendations are meant to support continued progress toward clearer, more consistent project oversight.”

The OAG made 10 recommendations to help the City strengthen project oversight, accountability and value-for-money in the delivery of capital projects. 

Quick Facts: 

• The project involved reconstruction and underground infrastructure servicing of the Southcote Road–Garner Road corridor to Highway 403 in Ancaster, covering approximately 1.5 kilometres and including roadworks, watermain installation and stormwater infrastructure. 
• City management requested the OAG undertake an independent review to assess how the project evolved and whether it was delivered in a manner that achieved value for money. 

Additional Resources:

• Webpage: Report: AUD26008: Southcote Road Capital Project Audit Contract | October 1, 2026