Ministry of Transportation gives design-build model a test drive

In consultation with the province’s roadbuilding and engineering sectors, the Ontario Ministry of Transportation (MTO) is experimenting with non-traditional contract delivery models such as design-build.

“We want to have a toolbox of different delivery models to allow us to select the most appropriate model for particular projects&#8230,” said Shael Gwartz, manager of the contract innovations office in MTO’s contract management and operations branch.

To date, the ministry has closed one contract, for rehabilitation of a bridge in the New Liskeard area. It has issued requests for proposals for four other “minor” contracts involving culvert replacement. Construction is to be completed this year.

Gwartz said MTO is starting with small projects to allow both the ministry and the industry to become familiar with their respective roles and responsibilities and establish appropriate administrative processes.

He said use of alternative contract delivery models will help ensure that the ministry can continue to deliver its highway capital program in the future.

“(However) traditional (design-bid-build) construction contract tendering will continue to be our primary means of procuring construction work,” Gwartz said.

The ministry has been working in consultation with both the Ontario Road Builders’ Association (ORBA) and Consulting Engineers of Ontario (CEO).

Rob Bradford, executive director of ORBA, said his organization supports the move to use the design-build delivery model for projects “where appropriate.

“We have been working closely with MTO on contract documents and performance specifications to ensure there is an equitable sharing of risk between the owner and ORBA members,” he said.

Bradford said introduction of design-build contracts “is just one more way in which the industry is changing in step with the rest of the world.

“These will require contractors and engineers to develop new partnerships,” he said. “Contractors need to understand that they contain considerably greater risk than the conventional low-bid project.”

Bradford said ORBA continues to look for some type of honorarium to be paid to the unsuccessful shortlisted bidders “to recognize the significantly increased costs of bidding a design-build project.”

John McGill, chair of CEO’s liaison committee with MTO, said in a report prepared for the association’s annual conference that the ministry is expected to issue requests for proposals later this year for larger projects.