Item - 2023.GG8.27

The General Government Committee:

1. Requested the Chief Engineer and Executive Director, Engineering and Construction Services and the Chief Procurement Officer, Purchasing and Materials Management report back by the fourth quarter 2024 with the findings of the consultant’s review of capital delivery model options and best practices as well as the recommendations from the working group, comprised of staff in Engineering and Construction Services, Toronto Water, Transportation Services and Purchasing and Materials Management.

This report provides an update to members of the General Government Committee on the following three Council directions:

- GG3.21 - Request for Review of Engineering Services Capital Delivery Models

- IE6.7 - Military Trail Road Reconstruction

- MM11.10 - Establishing an Enforceable Enhanced Code of Conduct for Construction

City staff currently manage construction contractors through compliance, budget management, project oversight, and administration, using tools like the Contractor Performance Evaluation. However, the increasing scope, bundling and sheer volume of projects have led to more complex construction processes, impacting residents, businesses and the general public. This growing complexity of project delivery has driven changes and highlighted the need for a re-evaluation of consultant and contractor management across all project phases.

To address the issues highlighted in these three separate motions, all pertaining to various aspects of construction consultant and contractor management, staff from various divisions have formed a working group to gather information.

To advance this work, Engineering and Construction Services, has partnered with Purchasing and Materials Management to develop a Design-Build contract delivery model which provides opportunities to better align project risks with the contractor and the owner. Recruitment of a new Quality Assurance manager is also underway. It is expected that this position will further strengthen established processes for design review and contract oversight.  

The working group also recommends initiating the following activities:

- Hire an external consultant to research and consult with industry stakeholders, with a report in late 2024.

- Explore alternative construction procurement methods and ways to enhance collaboration on capital projects.