A Message From Councillor Perks – 'Managing Construction Disruptions' Report

Posted on March 18, 2013

 

Friends,

 

I wanted to make sure you saw this report: PWI 21.5 “Managing Construction Disruptions” (http://app.toronto.ca/tmmis/viewAgendaItemHistory.do?item=2013.PW21.5).

 

After the Roncesvalles reconstruction project, a number of your neighbours and I met a couple of times with City staff. Those conversations contributed to the conclusions of this staff report. The report outlines 12 strategies to improve the way we do major construction projects.

 

You might remember that one of the big problems on Roncesvalles was a gas main being too close to the streetcar track. That was one of the main causes for the project going over deadline. As a result of our experiences on Roncesvalles, the staff are recommending an improved standard for Subsurface Utility Engineering that will be implemented for all projects that have an underground construction component.

 

Staff are also recommending, for large infrastructure projects like the Roncesvalles reconstruction, that there be a system of Milestone Payments, where no payment is made until the contractor reaches a defined milestone and/or substantial performance; this is to encourage contractors to finish projects in a more timely matter.

 

Also, the Liquidated Damages for delayed work will be dramatically increased and calculated to reflect genuine pre-estimate of the costs of the time delays.

 

A system of Contractor Prequalification and Contractor Performance Evaluation will be established to improve accountability and work quality.  The Contractor Prequalification process outlines that contractors must, “demonstrate they have the necessary capacity and expertise to perform work before they can submit a bid. It minimizes risk of under-performing contactors by screening out unqualified contractors.”  Further, in addition continuing project management oversight, the Contractor Performance Evaluation tool provide an official record for Determining, “whether a contractor has demonstrated the necessary workmanship, performance, expertise and capabilities on City of Toronto projects to bid future work.”

 

Another important feature is an approach to improve the Third Party Claims Handling Process for residents directly impacted by the construction.  City Staff and the City’s Insurance Adjustor will be giving specified time frames to respond to claim submission and act on a claim. The contractor will need to acknowledge the claim within 5 working days, and respond to the claim within 25 working days. Only if the insurance company seeks further information will any further extension be permitted.  In order to do this, third party claims will be included in the General Conditions of contracts which will allow the City to hold back monies payable to the contractor until there is proof that they have responded to a claim. Further, contractors will provide monthly updates on the status of all third party claims received until the claims are resolved.

 

In all, the twelve strategies outlined in the report are a significant improvement to not only the way the City of Toronto and its contractors do business, but importantly how residents and communities are affected by construction.  I would like to ask you to take a moment and read the Staff Report and let me know if you have any additional thoughts or questions.

 

Sincerely,
Gord

 

Councillor Gord Perks

Ward 14, Parkdale-High Park

416-392-7919

councillor_perks@toronto.ca

www.gordperks.ca

A Message From Councillor Perks – ‘Managing Construction Disruptions’ Report

Posted on March 18, 2013

 

Friends,

 

I wanted to make sure you saw this report: PWI 21.5 “Managing Construction Disruptions” (http://app.toronto.ca/tmmis/viewAgendaItemHistory.do?item=2013.PW21.5).

 

After the Roncesvalles reconstruction project, a number of your neighbours and I met a couple of times with City staff. Those conversations contributed to the conclusions of this staff report. The report outlines 12 strategies to improve the way we do major construction projects.

 

You might remember that one of the big problems on Roncesvalles was a gas main being too close to the streetcar track. That was one of the main causes for the project going over deadline. As a result of our experiences on Roncesvalles, the staff are recommending an improved standard for Subsurface Utility Engineering that will be implemented for all projects that have an underground construction component.

 

Staff are also recommending, for large infrastructure projects like the Roncesvalles reconstruction, that there be a system of Milestone Payments, where no payment is made until the contractor reaches a defined milestone and/or substantial performance; this is to encourage contractors to finish projects in a more timely matter.

 

Also, the Liquidated Damages for delayed work will be dramatically increased and calculated to reflect genuine pre-estimate of the costs of the time delays.

 

A system of Contractor Prequalification and Contractor Performance Evaluation will be established to improve accountability and work quality.  The Contractor Prequalification process outlines that contractors must, “demonstrate they have the necessary capacity and expertise to perform work before they can submit a bid. It minimizes risk of under-performing contactors by screening out unqualified contractors.”  Further, in addition continuing project management oversight, the Contractor Performance Evaluation tool provide an official record for Determining, “whether a contractor has demonstrated the necessary workmanship, performance, expertise and capabilities on City of Toronto projects to bid future work.”

 

Another important feature is an approach to improve the Third Party Claims Handling Process for residents directly impacted by the construction.  City Staff and the City’s Insurance Adjustor will be giving specified time frames to respond to claim submission and act on a claim. The contractor will need to acknowledge the claim within 5 working days, and respond to the claim within 25 working days. Only if the insurance company seeks further information will any further extension be permitted.  In order to do this, third party claims will be included in the General Conditions of contracts which will allow the City to hold back monies payable to the contractor until there is proof that they have responded to a claim. Further, contractors will provide monthly updates on the status of all third party claims received until the claims are resolved.

 

In all, the twelve strategies outlined in the report are a significant improvement to not only the way the City of Toronto and its contractors do business, but importantly how residents and communities are affected by construction.  I would like to ask you to take a moment and read the Staff Report and let me know if you have any additional thoughts or questions.

 

Sincerely,
Gord

 

Councillor Gord Perks

Ward 14, Parkdale-High Park

416-392-7919

councillor_perks@toronto.ca

www.gordperks.ca

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