James Peters (Project Consultant) and Maria Noort (Project Controls Specialist) visited the site in March to check in on the progress of the dorm and to work with the construction manager to finalize the cost estimate. Prior to travelling to India, we became aware that the Indian government implemented GST in the country on July 1, 2017. In the state of Himachal Pradesh, GST has been set at 18%! Because GST is paid for by the end user, SN has to pay. We have explored options with our accountant and currently, non-profit organizations in India are not eligible for GST rebates as they are in Canada. This adds an additional 18% ($114,000) to the cost of the project.
In addition to GST, a number of other factors have contributed to cost increases:
- unexpected ground conditions have increased the quantities of the retaining walls and footings ($10,000);
- the need for workers' accommodations we required on site because local labour was not available ($20,000); and,
- water and electricity supply to the dorm was not previously accounted for.
As a result, our new estimate to complete the Boys' Dorm is $800,000. This creates an additional challenge, but we are confident that God continues to be with us.
So far we have raised nearly $346,692. Praise God! We still have a long way to go but we believe God has blessed this project and we trust that he will provide in his perfect timing. Thank you to each and every one who has supported this project so generously.
We will continue to promote and fund raise for the project. Please consider donating today to be part of building a safe place where the boys can grow in faith, hope and love!
For more information, please contact us at firstname.lastname@example.org