April 9, 1998
To: Works and Utilities Committee
From: Michael G. Thorne, Interim Functional Lead - Water and Waste Water Services
Subject: Consulting Services - Construction Supervision and Administration, Western Beaches Storage Tunnel (WBST) (Trinity-Niagara, High Park)
Purpose:
To obtain authorization to amend the consultant agreement dated July 5, 1996 with CH2M Gore & Storrie Limited and MacViro Consultants Inc. to include Detailed Design Reviews and Construction Supervision/Administration for Phase I of the Western Beaches Storage Tunnel.
Funding Sources, Financial Implications and Impact Statement:
Funding in the total amount of $38.5 million for engineering services and construction of Phase I of the WBST has been previously approved by the Council of the former City of Toronto and are available in Account Nos. 295480-39220-76000-295480 and 217713-39220-76000-217713 of the former City of Toronto. A contract for the amount of $32.0 million for the design/build of Phase I of the project has been awarded and the amount of $970,000.00 for Detailed Design Reviews and Construction Supervision/Administration for Phase I of the project has been provided for within the approved budget of $38.5 million.
Recommendations:
It is recommended that:
(1) the terms of reference of the consulting agreement dated July 5, 1996 for the preparation of the preliminary design and tender documents for the WBST be amended to include reviews of detailed design calculations and drawings prepared by the design/build contractor, and the construction supervision and construction administration of the tunnel project;
(2) the total consulting fee of $811,759.20, including GST, provided for in the consulting agreement dated July 5, 1996 and in the amending consulting agreement dated December 18, 1997 with CH2M Gore & Storrie Limited and MacViro Consultants Inc. be increased by $970,000.00 to $1,781,759.20, including GST; and
(3) the appropriate City Officials be authorized and directed to take the necessary action to give effect thereto.
Council Reference/Background/History:
The Council of the former City of Toronto, at its meeting of July 5, 1996, in considering Communication No. 59 from the Board of Management, approved the engagement of CH2M Gore & Storrie Limited and MacViro Consultants Inc. to provide engineering consulting services for the preliminary design, preparation of a design/build proposed call and assistance in the pre-qualifications and tender process for the Western Beaches Storage Tunnel project at a cost of $727,229.20, including GST.
Subsequently, the Board of Management of the former City of Toronto at its meeting of December 11, 1997 (Minute No. 2.6) approved to amend the terms of reference of the engineering assignment to increase the consulting fees by $84,530.00 to $811,759.20, including GST to allow for the preparation and evaluation of a revised predesign and design/build request for proposal.
Furthermore, the Board of Management at its meeting of December 18, 1997 in considering the report dated December 17, 1997 from the City Engineer, approved, inter alia, the award of Phase I of the design/build Project at a cost of $32.0 million to the McNally-Frontier Joint Venture.
Comments and/or Discussion and/or Justification:
The purpose of the WBST, located generally south of Lake Shore Boulevard West between Strachan Avenue and Parkside Drive, is to intercept and store, during periods of rainfall, polluted sewer discharges to Lake Ontario from the City=s combined sewer system for subsequent treatment before release to the Lake. Intercepting and treating the polluted sewer discharges will improve the water quality along the Western Waterfront and substantially reduce the postings of the beaches as unsuitable for bathing and swimming during the summer season. The total cost for Phase I and Phase II of the project as quoted by the successful contractor amounts to $49.3 million. As indicated above, Phase I of the project has been awarded at a contract price of $32.0 million and the contractor has commenced preparation of the detailed design and mobilization for construction at the Battery Park construction site.
The WBST project is a design/build contract and during the entire construction period of approximately 30 months, the City, as the owner, must undertake:
- Reviews and approvals of detailed engineering design calculations and design/shop drawings prepared by the contractor;
- Construction supervision, e.g. inspection to ensure that the constructed work meets the specified and approved standards, performance specifications, and design drawings; and
- Construction administration, e.g. review and approval of progress claims and change orders.
To carry out these tasks, the City requires the assistance of consulting engineers and the estimated engineering fees (including GST) for this work are as follows:
Phase I Phase II Total (Including GST)
Design Reviews $360,000.00 $140,000.00 $ 500,000.00
Construction Administration $180,000.00 $120,000.00 $ 300,000.00
Construction Supervision $430,000.00 $270,000.00 $ 700,000.00
Total (Incl. GST) $970,000.00 $530,000.00 $1,500,000.00
The above services are to be paid on the basis of time plus expenses because the scope of work for design reviews, contract supervision and administration depends on the construction schedule and construction progress, difficulties encountered during design/construction and contractor=s performance.
The cost estimate for the above engineering services are considered appropriate for a project of the magnitude and of the complexity of the WBST.
As indicated above, the Council of the former City of Toronto has approved funding for Phase I of the WBST and at this time authorization is requested to engage consulting engineers for Detailed Design Reviews and Construction Supervision/Administration for Phase I of the Project. Funding for Phase II of the WBST will be requested as part of the 1999 Capital Budget Submission and approval for extending the consulting agreement to provide engineering services for Phase II will be requested at that time.
As indicated above, the consulting firms of CH2M Gore & Storrie Limited and MacViro Consultants Inc. have been engaged by the City to prepare the preliminary design, the RFP and have carried out the evaluation of the proposals submitted by the bidders. In order to maintain continuity with respect to engineering services for this project, it is recommended that the consulting engagement of these firms be extended to include the review of detailed design calculations and drawings and construction supervision/administration. Specifically, the reasons for continuing their engagement are as follows:
1. CH2M Gore & Storrie Limited and MacViro Consultants Inc. were selected to undertake the preliminary design, preparation of the design/build RFP and evaluation of contractor proposals as the result of a (competitive) proposal call. There were six consultants involved in the proposal call and the joint venture of CH2M Gore & Storrie Limited and MacViro Consultants Inc. achieved the highest overall ranking.
2. The WBST project is a design/build project and therefore the detailed design calculations and drawings are being prepared by the contractor=s engineer (McNally-Frontier Joint Venture has engaged Acres International Consulting Engineers to carry out the detailed design work). However, it is essential that the detailed design calculations and drawings are being reviewed by the City=s consultants to ensure that the performance specifications and standards stipulated in the proposal call are being met. Because CH2M Gore & Storrie Limited and MacViro Consultants Inc. have prepared the engineering and construction requirements for the City, including the performance specifications and standards, they have a detailed knowledge of the project and of the City=s requirements. Therefore, they can best assist the City in the review of design calculations and design/shop drawings.
Furthermore, construction supervision and administration for the WBST requires special expertise in deep tunnel construction not available within the Works and Emergency Services Department. The above consulting firms have the experience and expertise in deep tunnel construction and because of their previous involvement and detailed knowledge of the project, they are best suited to undertake the construction supervision and administration on behalf of the City.
3. The design/build contract for the WBST is in progress and the engagement of another consulting engineer would result in a significant time delay as such consultant would have to familiarize him/herself with the project, e.g. the City=s requirements, specifications, approval process, and the design/build agreement provisions, etc. A delay in the WBST project would result in increased contract cost and potential loss of funding under the Canada-Ontario Infrastructure Works Program.
4. As per requirement in the consulting agreement, CH2M Gore & Storrie Limited and MacViro Consulting Inc. have provided Professional Liability Insurance for their design services related to the preliminary design and preparation of standards, performance specifications and tender documents. If another consultant is engaged to carry out the detailed design reviews and construction supervision/administration, the City=s protection provided by the Professional Liability Insurance will be jeopardized.
5. As indicated above, the total cost of the engineering services related to design reviews and construction supervision/administration are dependent on the construction schedule, construction progress, difficulties encountered during design/construction and contractor=s performance. Therefore, these services are to be paid on the basis of time plus expenses and do not lend themselves to the calling of competitive bids.
6. It is accepted practice and the recommendation of the Engineering and Consulting Profession that the Engineer who prepares the design and the contract specifications also assists the owner in Contract Administration and Supervision. This is necessary because the engineer who prepared the design has a detailed knowledge of the project and because there are invariably design changes and changes to specifications necessary during the course of (large) construction projects which must be reviewed and approved by the designer.
The assignment shall be performed in accordance with amendments to the consultant agreement dated July 5, 1996 and the amending agreement dated December 18, 1997 with CH2M Gore & Storrie Limited and MacViro Consultants Inc. on terms and conditions satisfactory to the Commissioner of Works and Emergency Services and the City Solicitor.
Conclusions:
The consulting firms of CH2M Gore & Storrie Limited and MacViro Consultants Inc. have been selected by the City to undertake the preliminary design and preparation of design/build tender documents based on a (competitive) proposal call. Because they have prepared the preliminary design and the design/build tender document, they have a detailed knowledge of the project. Therefore, these consultants will provide seamless continuation of engineering services for the WBST to the City and are best suited to undertake the detailed design reviews and the construction supervision and administration for the City.
Contact Name and Telephone Number:
Werner Wichmann, P.Eng., City Engineer, Former City of Toronto, 392-7703
______________________________ ______________________________
Michael G. Thorne Barry H. Gutteridge
Interim Functional Lead Commissioner
Water and Waste Water Services Works and Emergency Services
