Contract award and FC for administrative centre in Canada

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Contract award and FC for administrative centre in Canada

The Infrastructure Ontario (IO) and the Ministry of Government and Consumer Services (MGCS) have awarded a fixed-price contract to Fengate PCL Progress Partners (FP3) for the Macdonald Block Reconstruction Project. Project and financial close were achieved on August 9, 2019. The Macdonald Block complex, which consists of four towers and a podium near Queen's Park in Toronto, is a critical hub of government operations that have never undergone a major renovation since it was completed in 1971.

The reconstruction project is being delivered using a public-private partnership (P3) delivery model. The contract requires FP3 to design, build and finance the reconstruction of the complex; and maintain the complex for 30 years including lifecycle repair and renewal.
The reconstruction project contract is valued at approximately CAD1.536 billion (US$1.157 billion), which reflects the payments made during reconstruction, the substantial completion payment, and the monthly service payments during the 30-year maintenance period (adjusted for inflation).

The FP3 team includes:

  • Developers: Fengate Asset Management and PCL Investments Canada Inc.
  • Design-Builder: PCL Constructors Canada Inc.
  • Design Architect: WZMH Architects
  • Facilities Management: Johnson Controls Canada
  • Financial Advisor: National Bank Financial

IO and MGCS selected FP3 after extensive evaluations following an open, fair and competitive procurement process that began in August 2017. The procurement process was overseen by a third-party fairness monitor.

With the award of the contract, design work and construction activities will start immediately. Construction is expected to be substantially complete in the spring of 2024 with staged occupancy beginning soon after that.

The reconstruction project will update all core building systems which have reached the end of their useful life and must be replaced. Extensive remediation work will also be undertaken to remove designated substances from the complex.  Care will be taken to preserve the integrity of its many heritage features. The reconstructed complex will meet current building, health, safety, and accessibility standards accommodate significantly more employees and reduce the need for approximately 586,000 square feet of expensive third-party leased office space.

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