Item - 2020.GL14.23

The General Government and Licensing Committee:

1.  In accordance with Section 71-11.1C of the City of Toronto Municipal Code Chapter 71 (Financial Control By-law), granted authority to amend Purchase Order Number 6049734, issued to Struct-Con Construction Ltd. to complete the previously undiscovered remedial work at 4117 Lawrence Avenue East, by an additional amount of $4,050,000 net of all applicable taxes and charges ($4,121,280 net of Harmonized Sales Tax recoveries), revising the current Purchase Order value from $8,048,599 net of all applicable taxes and charges ($8,190,254 net of Harmonized Sales Tax recoveries), to $12,098,599 net of all applicable taxes and charges ($12,311,534 net of Harmonized Sales Tax recoveries).

This purpose of this report is to seek authority to amend Purchase Order Number 6049734 issued to Struct-Con Construction Ltd. ("Struct-Con"), as a result of Ariba Document Number 1896567634 (208-2009) for the municipal shelter renovations at 4117 Lawrence Avenue East, Toronto to complete previously undiscoverable remedial work. The total Purchase Order Amendment being requested is for an additional $4,050,000 net of all applicable taxes and charges, ($4,121,280 net of Harmonized Sales Tax recoveries).

The property at 4117 Lawrence Avenue East was acquired by the City in 2019 as one of the sites required for the addition of 1,000 new shelter beds to the City's emergency shelter system. Ongoing work at the site have revealed site condition issues which have resulted in a significant escalation in the renovation costs of the property.

The requested amount is required to address structural issues discovered through demolition as well as a hydro duct bank that was originally placed under the building.  These issues, which were not known at the time of design and could not have been identified through due diligence, need to be rectified in order to continue to work safely on site as well as comply with Ontario Building Code.