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TRANSCRIPT
Infrastructure Build:Risks in Construction Contracts
January 2017 | Paul Jachymek – Senior Legal Counsel
Road Map - Presentation
Who is Metrolinx?
What we are Building
How we Procure
What Keeps us up at Night – Risks on these Projects
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Who is Metrolinx?
Plan Build Operate
Metrolinx was created in 2006 by the Province of Ontario as the first
Regional Transportation Agency for the Greater Toronto and Hamilton Area.
Metrolinx Planning is guided by a Regional Transportation Plan – “the Big
Move”.
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We Plan: From 2008…
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We Plan: To A Network Vision
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Building the Regional Rapid Transit
Network
Two bus rapid transit projects
Partially in-service,with remainder under construction:
Viva in York Region
Mississauga Transitway
New light rail transit lines (LRT)
Under construction: Eglinton
Crosstown
In design/planning: Finch West Hurontario Hamilton
TransformingGO train service – Regional Express Rail (RER)
More service on all lines
Electric trains, every 15 minutes or better in both directions, for most GO customers
Connecting it all together
Expanding and revitalizing Union Station, the heart of the regional network
One payment system across the 905 region and now deploying on TTC, on UP and on OC Transpo
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UP Express
Express air
rail link from
Union Station
to Pearson
airport
Delivered on
time and on
budget
Started
service June
6, 2015
GO Transit and Regional Express Rail
(RER)
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Procurement RER Procurement Strategy
In June 2016, the Metrolinx Board of Directors approved the RER
Procurement Plan, which included:
Package 1 Enabling Works
Series of Design-Bid-Build, Build-Finance, and Design-Build-Finance
contracts
Both on-corridor and off-corridor construction
Target completion by 2020
Package 2 and 3 procurements (to be awarded in 2019)
Off-corridor (stations and parking)
On-corridor (track, signals, electrification, vehicles)
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Project Status - RER
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Corridor Project Stage In-Service
Date On-Time On-Budget
Regional Express Rail Projects
Barrie Design 2025
Kitchener Design 2025
Lakeshore East Design 2025
Lakeshore West Design 2025
Milton Design 2025
Stouffville Design/Construction 2025
USRC Design 2025
Network Infrastructure Design 2025
Vehicles Design/Study 2025
Parking, Access & Property Design/Study Various
TOTAL RER $13,500,000,000
RER Projects: Short Term Launch
(Package 1)
No. Project Model Issue RFQ Issue RFP FC
1Stouffville Stations
PackageDBF 16-Jul 16-Sep Q3 2017
2HWY 401 / 409 Rail
TunnelDBF 16-Sep 16-Dec Q3 2017
3Cooksville Station
RedevelopmentDBF 16-Sep Q1 2017 Q3 2017
4 Union Station upgrades DBF Q4 2016 Q2 2017 Q1 2018
5 Barrie Corridor Grading BF Q1 2017 Q3 2017 Q4 2017
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Lakeshore East
Grading Package (East
Corridor Expansion)
BF Q1 2017 Q3 2017 Q1 2018
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Lakeshore East
Grading Package
(Central Corridor
Expansion)
BF Q1 2017 Q3 2017 Q1 2018
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RER Projects: Short Term Launch
(Package 1)
No. Project Model Issue RFQ Issue RFP FC
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Lakeshore East
Grading Package (West
Corridor Expansion)
BF Q1 2017 Q2 2018 Q4 2018
9Rutherford Station
PackageDBF Q1 2017 Q3 2017 Q2 2018
10Lakeshore East -
Eastern StationsBF Q1 2018 Q2 2018 Q1 2019
11Lakeshore West
Corridor PackageDBF Q3 2017 Q4 2017 Q4 2018
12Davenport Diamond
Grade SeparationDBF Q3 2017 Q4 2017 Q3 2018
13 Kipling Bus Terminal DBF Q1 2017 Q2 2017 Q3 2017
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Cooksville Station
Station improvements and 1,900
space parking structure
Coordinated with the Hurontario
LRT
In the RFQ stage
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Kipling Station
New bus terminal
integrated into the
TTC subway station
GO station
accessibility
In the RFQ stage
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Bridges, Track and Grade Separations
New infrastructure
Approximately 150 kms of upgrades to
tracks
Nearly 100 bridge modifications
146 rail/road crossings being
evaluated for grade separations
Rouge River Bridge Expansion
Davenport Diamond Grade Separation
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LRT Initiatives
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Corridor Project Stage Approved Budget for Capital Construction
In-Service Date
On-Time On-Budget
Rapid Transit Projects
Eglinton Crosstown LRT Construction $5,300,000,000 2021
Finch West LRT Design $1,000,000,000 2021
Hurontario LRT Design $1,400,000,000 2022
Hamilton LRT Design $1,000,000,000 2024
Viva BRT Various $1,500,000,000 Various
Delivery of Projects – Methods Used
AFP – Specific for transit - Bundled
DBF
BF
DBFM
DBFMO
(Vehicles -In)
CCDC 2/4- Revised
DB –New
Technical Advisors - Bundled
QBS – New approach
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Risk Transfer Principles
Assign risk to the party best able to:
Manage and mitigate the risk
Price the risk and/or accept cost risk
Recognize and plan for sector-specific and project-specific risks
Maintain the principles that risks allocated to Contractor must be
capable of being priced by Contractor
Establish clear contractual and technical rules in the agreement
Go to market with consistent approach on Risk Management
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Transit Projects have Unique and Complex
Risks
Long Linear projects in urban environments with long timescales
Geotechnical
Environmental
Utilities
Existing Major Infrastructure
Permits, Licenses, Approvals and Agreements
Track Access Regime
Impact on Existing Service
Property Impacts - acquisitions
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Transit Projects have Unique and Complex
Risks
Stakeholder Relationships
Payments Mechanism
Community Benefits
Key Individuals
Liquidated Damages
VPM
Injurious Affection
Safety
Value for Money
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Some Issues - Expanded
Geotechnical
As is where is basis
Baseline Reports
Project Specific
Environmental
Rail Corridor = Rail Corridor Contamination
PLAA
Risk of stakeholder review, political risk (volume issues)
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Some Issues - Expanded
Utilities
Unknown and Mislocated Utilities
Metrolinx risk where location is severely mislocated
Relocation
Shared risk regime for cost and/or schedule for relocation
work that must be completed by the Utility company
themselves that is of a significant value or impact on
schedule (Category 1 utility regime)
What can be done ahead of time
Existing Infrastructure
Latent Defects and integrated infrastructure
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Some Issues - Expanded
Track Access
Establish clear rules for the submission and processing of
requests for access to track
Flagging provided by Metrolinx supplier with clear rules for
requesting flagging services and clear commitment to
provide
Delay and Compensation Event eligibility for failure to
provide flagging where properly requested
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Some Issues - Expanded
Impact on Service
In circumstances where Metrolinx service to customers must
be impacted by Project Co, establish contractual terms and
conditions to motivate proponents to limit impacts (include
the pricing of these provisions in the procurement process to
be evaluated)
Damages associated with delays – LDs – Interim
Completion, Substantial Completion, Train Delays, Track
Closures, Customer Impacts
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