February 17, 2011
Ontario Ministry of Transportation outlines 2011 plans to Ontario Road Builders’ Association
Ontario’s transportation ministry says it will continue to explore innovations in contract delivery this year as it makes $2 billion of highway and road construction work a reality.
“Innovative contract delivery models are to supplement current approaches, not replace them,” said Brian Gaston, Ontario Ministry of Transportation (MTO) assistant deputy minister, provincial highway management.
The province has allocated $1.95 billion for highway construction: roughly $1 billion designated for southern Ontario and over $900 million for the north. How that work will roll out through MTO can range from traditional design-build, which now has minor and major categories, to alternative finance procurement (AFP). The ministry has been tasked to find efficiencies through innovation, whether it is through contracts or project specifications.
Following are some highlights from MTO’s activity update at the recent Ontario Road Builders’ Association (ORBA) convention in Toronto.
In 2010 MTO was able to tender nine projects under the design-build minor contract model. Projects under this category are “straightforward projects” such as culvert or expansion joint replacements, explained Shael Gwartz, manager, innovations office, MTO.
“The early results are generally positive,” he said. “The goal is to do to continue to deliver projects through that model between three to five projects per year, per region.”
MTO is currently finalizing its design-build major model for more complex projects, such as expansion, rehabilitation and construction, valued between $10 and $50 million. The projects may also be spread over multiple construction seasons and have very specific risk allocation. MTO’s goal is to use this model for one project, per region, per year.
Gwartz noted that work on the request for qualification documents under this model has been completed and MTO is now working on the request for proposal documents.
The MTO is also looking at performance specifications in its contracts.
Among the items in this area is describing an element’s performance specification, such as pavement, and establishing the performance parameters for it. Discussions between MTO and ORBA members will benefit this specification development, said Gerry Chaput, executive director, asset management, MTO.
“It is important to include the contracting industry to ensure we get it right, to ensure we do not make something too difficult and ensure we do not sacrifice something that they think they are able to do appropriately,” said Chaput.
MTO’s contracts and documents sub-committee will continue to look at issues such as liquidated damages, contract completion and unlimited liability for maintenance contracts.
The ministry reports that 25 per cent of its contracts in 2010 were completed late and it found this result was too high.
The MTO plans to put out 33 early tenders this year between now and March. It has $782 million earmarked for purchasing property along project corridors such Highway 407, for its anticipated expansion east, and the Windsor-Essex parkway, the province’s most expensive highway investment ever.
The ministry’s $1.9 billion budget will see 27 per cent of spending go to central Ontario, 26 per cent to the northwest, 18 per cent to the northeast, 15 per cent for the west and 14 per cent for the east.
In 2010, MTO set out to do 2,300 kilometres of paving and ended up doing 4,070 km instead. It opened 27 bridges and rehabilitated 93 others.
|MOST POPULAR STORIES|
- PCL Constructors works on Humber River Regional Hospital in Toronto
- Tower Hill unveils 56-storey condo tower project
- Hundreds of workers to be out of work as Caterpillar Inc. is set to close Toronto factory
- London association withdraws from COCA
- OPG $1 billion proposal to bury nuclear waste up for comment
- 20 Most Popular Stories
|TODAY’S TOP CONSTRUCTION PROJECTS|
These projects have been selected from 316 projects with a total value of $2,787,806,637 that Reed Construction Data Building Reports reported on Friday.
$90,000,000 Richmond Hill ON Prebid
$82,000,000 White River Twp ON Tenders
$40,650,000 Markham ON Prebid
- VIDEO: Competing in the trades
- Provinces need to loosen up apprenticeship rules
- Way Up on Westwood
- Building Up On Bayview
- Barrie Construction Association rolls with motorcycle ride for cancer
- Vimy Ridge memorial gets new visitor centre
- Minnesota Vikings unveil new multi-use stadium plan
- Proposed Ambassador Bridge twinning draws Windsor mayor’s ire
- Construction on pedestrian tunnel to Billy Bishop Airport continues to make progress
- Construction Site Arson
- Journal of Commerce Update for the week of May 20th, 2013
- Industry reacts to surprise B.C. Liberal majority
- Calgary Airport Tunnel
- Worker at centre of union sign up allegations speaks out
- Calgary program aims to get more people into the trades
- Midrise in the City
- Veterans battle barriers into the trades
- Government makes changes to online tendering
- SNC-Lavalin maintains that new bribery allegations have been resolved
- B.C. faces a tough battle for top talent
- Keyano College building state of the art training facility
- Essential skills can play a vital role in an apprentices' success
- Taking a closer look at the risks in green building for contractors
- Colleges conduct construction research in addition to teaching
- Skills Canada BC Competition
- Lower Mainland high school trades program is unique
- Construction Learning Forum aims to educate
- High schools looking for more industry participation
- Industrial construction supervisor program takes off
- Saskatchewan bill passed
- Edmonton garners support for regional cash for arena
- Feds pledge $5 million for Vimy memorial
|ALEX’S ECONOMICS BLOG|
Reed Construction Data Canada’s Chief Economist Alex Carrick discusses current developments in the North American economic environment with emphasis on the construction industry.
- An Overview of Prices and Sales in the Diverging U.S. and Canadian Housing Markets (April 25, 2013)
- Canada’s Precarious Dependence on the Commodity Price Super-Cycle (April 22, 2013)
- Twenty major upcoming residential and transportation terminal construction projects - April 2013 (April 15, 2013)