The City has a large and complex construction portfolio that needs to be managed effectively, efficiently and economically by the Engineering and Construction Services Division (ECS). Between 2013 and 2017, ECS spent $460 million annually on capital projects. Change orders represent up to 10% of this cost. It is very important to ensure that changes are justified, and that change order costs are reasonable
ECS provides specialized engineering and construction services to internal clients including Toronto Water, Transportation Services, and Solid Waste Management Services, and external clients such as the development industry and utility companies.
ECS’s capital program has grown over the years with more projects delivered each year. ECS delivered $466M in capital projects in 2015, $491M in 2016, and over $500M in 2017. For these projects, ECS uses in-house resources and external consultants who provide design and contract administration services.
ECS has good procedural documentation and guidelines to support the change order process. However:
Implementing the four recommendations will improve the controls over oversight of construction contracts and ensure the City receives the best value for money.