To:Budget Committee

Subject:Supplementary Report for the Award of Contract No. T-01-99 - Humber Bridges Project - F.G. Gardiner Expressway Ramp Bridges Nos, 4, 5 and 6 over Humber River and Approaches - Tender No. 19-1999 - Provision for Extra Work

From:Urban Environment and Development Committee

Recommendations:

The Urban Environment and Development Committee referred the supplementary report (April 14, 1999) from the Commissioner, Works and Emergency Services to the Budget Committee for consideration.

The Committee reports, for the information of the Budget Committee, having recommended to Council, for its meeting on May 11, 1999, the adoption of the report (April 8, 1999) from the Commissioner, Works and Emergency Services and the Chief Financial Officer and Treasurer.

Background:

At its meeting on April 19, 1999, the Urban Environment and Development Committee had before it the joint report (April 8, 1999) from the Commissioner of Works and Emergency Services and Chief Financial Officer and Treasurer, advising of the results of the Tender issued for the construction of three (3) F.G. Gardiner Expressway ramp bridges and associated approaches in accordance with specifications prepared by the Works and Emergency Services Department, requesting authority to issue a contract to the recommended bidder, and to reduce the speed limit on the F.G. Gardiner Expressway Westbound in this area during construction, and recommending that:

(1)Contract No. T-01-99 for the construction of the F.G. Gardiner Expressway Ramp Bridges No. 4, 5 and 6 over the Humber River and Approaches be awarded to Dufferin Construction Company, a division of St. Lawrence Cement Inc., in the total amount of $19,705,560.21 including all taxes and charges, having submitted the lowest Total Adjusted Tender;

(2)commencing the first day of construction expected to be as early as May 14, 1999 and terminating on the last day of construction (anticipated to be on July 22, 2000 based on the recommended bidder's schedule), the speed limit on the F.G. Gardiner Expressway westbound from a point 900 metres east of Ellis Avenue to a point 800 metres west of Palace Pier Court be lowered to 60 kmph from its present posted speed (90 or 100 kmph);

(3)the appropriate by-laws be amended accordingly;

(4)the introduction of any necessary Bill(s) be authorized; and

(5)the appropriate City of Toronto officials be directed to take the necessary action to give effect thereto.

The Committee also had before it the supplementary report (April 14, 1999) from the Commissioner of Works and Emergency Services requesting authority for the Commissioner of Works and Emergency Services to increase the expenditure by a maximum of 10 per cent to Contract No. T-01-99 subject to the availability of funds in order to cover any unforeseen and necessary additional work that may arise during construction to avoid delays and claims, and recommending that the Commissioner of Works and Emergency Services be authorized to make additional expenditures under this contract, and to increase the value of the contract up to a maximum of 10 per cent of the original contract value to cover additional costs provided there are sufficient funds within the Capital Works Programme.

The Committee's recommendations are as noted.

City Clerk

Christine Archibald

Item 7

cc:Commissioner of Works and Emergency Services

Chief Financial Officer and Treasurer

(Joint Report dated April 8, 1999, addressed to the

Urban Environment and Development Committee from the

Commissioner of Works and Emergency Services and the

Chief Financial Officer and Treasurer)

Purpose:

The purpose of this report is to advise of the results of the Tender issued for the construction of three (3) F.G. Gardiner Expressway ramp bridges and associated approaches in accordance with specifications prepared by the Works and Emergency Services Department, and to request authority to issue a contract to the recommended bidder, and to reduce the speed limit on the F. G. Gardiner Expressway Westbound in this area during construction.

Source of Funds and Financial Implications:

Funding for this project for 1999 has been approved by Council and is available in the Works and Emergency Services Capital Account TR028 - Replacement of Gardiner Humber Bridges.

Originally, it was envisaged that the construction of the three ramp bridges on the F.G. Gardiner Expressway over the Humber River would take approximately 3 years to complete. The 1999-2003 Capital Works Programme was prepared taking into account the projected cash flow that would result from a three-year duration. With the award of a contract based on a two-year duration, the 1999-2003 Capital Works Programme will need to be changed to reflect the increase in cash flow requirements for the year 2000. The Department will take necessary action in modifying the 1999-2003 Capital Works Programme.

Recommendations:

It is recommended that

(1)Contract No. T-01-99 for the construction of the F.G. Gardiner Expressway Ramp Bridges No. 4, 5 and 6 over the Humber River and Approaches be awarded to Dufferin Construction Company, a division of St. Lawrence Cement Inc., in the total amount of $19,705,560.21 including all taxes and charges, having submitted the lowest Total Adjusted Tender;

(2)commencing the first day of construction expected to be as early as May 14, 1999 and terminating on the last day of construction (anticipated to be on July 22, 2000 based on the recommended bidder's schedule), the speed limit on the F. G. Gardiner Expressway westbound from a point 900 metres east of Ellis Avenue to a point 800 metres west of Palace Pier Court be lowered to 60 kmph from its present posted speed (90 or 100 kmph);

(3)the appropriate by-laws be amended accordingly;

(4)the introduction of any necessary Bill(s) be authorized; and

(5)the appropriate City of Toronto officials be directed to take the necessary action to give effect thereto.

Council Reference:

The Bid Committee at its meeting held on April 1, 1999 opened the following tenders for Contract No. T-01-99 for the construction of F. G. Gardiner Expressway Ramp Bridges No. 4, 5 and 6 over the Humber River and Approaches:

Name

Dufferin Construction Company, a division of St. Lawrence Cement Inc.

Armbro Materials & Construction Ltd.

Bot Construction Ltd.

BFC Construction Corporation

*Tender prices corrected for mathematical errors. Purchasing and Materials Management has verified that the mathematical errors are correct.

Part "A" is the total value of the tendered work items. Adjusted Part "A" allows a credit against Part "A" of 10 per cent of the tendered value of the Canadian steel incorporated into the tender. Part "B" is based on the number of consecutive calendar days required by the tendering contractor to complete all contract work multiplied by a daily contracting charge of $10,000.00. The Total Adjusted Tender Price is the sum of Adjusted Part "A" and Part "B", and is the total value of the tender for evaluation and award purposes. Payments under the contract will be in accordance with Part "A" tender prices. In addition, the Contract contains an incentive/disincentive provision to ensure timely completion. For each day the Contractor is late with the actual schedule, a deduction of $10,000.00/day will be made. Conversely, for each day the Contractor betters the schedule an extra payment of $10,000.00/day will be made.

The tender process was conducted in complete compliance with the guidelines set out in the tender documents and outlined to prequalified contractors at a pre-tender meeting held on March 10, 1999 at Metro Hall. This is the same tendering process done for Contract T-01-97 under which the F.G. Gardiner Expressway Eastbound and Westbound bridges were completed in one year.

BFC Construction Corporation submitted a tender which did not have page 37 of the Form of Tender completed. The completion of page 37 was necessary to evaluate the Total Adjusted Price, including the value of domestic steel to be used on the project as well as the number of calendar days to complete the project. As such, the Total Adjusted Tender Price is unknown and therefore the tender is informal. City Legal Department has been consulted and agrees with our interpretation.

Comments:

The tender document submitted by the recommended bidder has been reviewed by the Commissioner of Works and Emergency Services, and was found to be in conformance with the tender requirements.

The Manager, Fair Wage and Labour Trades Office, has reported favourably on the firm recommended.

To construct the new bridges and ramp approaches, barricaded work zones have to be created for the safety of the construction workers and the road users. To create the space for the work zones, the existing lanes of traffic have to be reconfigured thus resulting in narrower lanes and shoulder widths and more abrupt alignments than would otherwise exist on an expressway. In addition, the prevailing conditions of a roadway typically diminish in a construction zone from the entering/exiting construction vehicles; uneven pavement; reduced surface drainage; reduced illumination; etc., which would characteristically result. As such, the speed limit should be reduced to 60 kmph on the expressways to maintain safe traffic conditions.

To construct Bridge 6 and Approaches lands have to be acquired from Canadian National Railways. Delegated authority from the C.A.O. has been obtained for the land acquisitions, and Canadian National Railway has already given the City permission to enter upon the lands for construction purposes through the issuance of a work permit. Furthermore, Real Estate advised that agreement has been reached with Canadian National Railway for the sale of the lands and closing is pending the completion of the legal survey plans needed for registration. Closing is anticipated by April 30, 1999.

Conclusions:

This report requests authority to issue a contract for the construction of the F. G. Gardiner Expressway Ramp Bridges Nos. 4, 5 and 6 in accordance with specifications to Dufferin Construction Company, a division of St. Lawrence Cement Inc. who submitted the lowest Total Adjusted Tender Bid for the Contract.

In order to maintain safe traffic operations and a safe work zone throughout the construction period, the speed limit should be reduced to 60 kilometers per hour as set out in this report.

Contact Name and Telephone Number:

Mike Chung, P. Eng.Lou Pagano

Manager, Structures & ExpresswaysDirector

Design Construction and InspectionPurchasing & Materials Management

Technical Services DivisionTelephone: 392-7312

Telephone:392-8341

(Report dated April 14, 1999, addressed to the

Urban Environment and Development Committee from the

Commissioner of Works and Emergency Services)

Purpose:

The purpose of this report is to request authority for the Commissioner of Works and Emergency Services to increase the expenditure by a maximum of 10 per cent. to Contract No. T-01-99 subject to the availability of funds in order to cover any unforeseen and necessary additional work that may arise during construction to avoid delays and claims.

Funding Sources:

Funding for this project has been approved by Council and is available in the Works and Emergency Services Capital Account TR028, Replacement of Gardiner Humber Bridges.

Recommendations:

It is recommended that:

(1)the Commissioner of Works and Emergency Services be authorized to make additional expenditures under this contract, and to increase the value of the contract up to a maximum of 10 per cent. of the original contract value to cover additional costs provided there are sufficient funds within the Capital Works Programme.

Council Reference:

At its meeting held on January 6, 1998, City of Toronto Council enacted By-law No. 7-98, Interim Financial Control By-law, which repealed former Metro By-law No. 146-90. In accordance with former Metro By-law No. 146-90, as amended, the Department Head had authority to approve additional expenditures on a duly executed commitment up to an amount equal to ten (10) per cent. of the commitment provided sufficient funds exist in the Capital Works Programme. For the recently closed Contract No. T-01-99, Tender No. 19,1999, which is being recommended for award to Dufferin Construction Company, a division of St. Lawrence Cement Inc., in the amount of $19,705,560.21, an additional $1,970,556.02, would therefore have been available for possible extra work under the old Metro By-law.

As the financial interim by-law contains no provision to exceed the awarded contract value, as confirmed by the City's Legal Department, the Works and Emergency Services Department has effectively lost its ability to authorize unforeseen and necessary additional work that may arise during construction of capital works and to include them within the existing contract. Generally, the additional work must be incorporated into the existing contract for continuity, warranty, liability, and/or safety reasons.

In the previous Humber Bridges Project contract, Contract No. T-01-97, an extra payment of approximately $72,000.00 was made to the contractor because a soft seam of rock was discovered in the bedrock during the construction of the foundation caissons. As a result, the caissons had to be constructed deeper than originally anticipated, and at a greater cost. When this unforeseen condition was discovered, an immediate direction had to be given to the contractor on how to proceed.

Without authority to authorize extra work, we would have to report to Council and incur a delay of potentially up to three (3) months to get authority for the additional expenditure before giving the contractor authorization to do the additional work. This type of holdup would unnecessarily delay the construction and, more importantly, would also expose the City to delay and late payment costs.

In Contract No. T-01-99, an incentive of $10,000.00 per day for completion earlier is allowed for similar to the previous Humber Bridges contract No. T-01-97 to accelerate construction. As provided under that contract, an additional $250,000.00 payment was made because completion was 25 days early. Also, a lump sum bonus of $200,000.00 is being offered should the contractor complete Bridge No. 4 and open it to traffic by November 1, 1999.

Conclusions:

The Commissioner of Works and Emergency Services should be authorized to make additional expenditures to Contract No. T-01-99 up to an amount not exceeding $1,970,556.02 provided sufficient funds exist.

Contact Name and Telephone Number:

Mike Chung, P. Eng.

Manager of Structures

Metro Hall

Telephone:392-8341

Fax:392-6279