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TO: |
Mayor and Members of Council |
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FROM: |
Jim Sales,
Commissioner of Community and Fire Services |
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PREPARED BY: |
Alan
Wolfe, P. Eng. Project Consultant |
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DATE OF MEETING: |
2004-February-16 |
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SUBJECT: |
George
Pingle House Restoration and Addition - Construction Strategy |
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RECOMMENDATION:
That the report entitled “George Pingle House Restoration and Addition –
Construction Strategy” be received;
And that Council approve hiring Bondfield Construction Company Limited
to be the general contractor for the construction of the George Pingle House
Restoration and Addition for the fee of $64,890 including GST;
And that staff report back to Council to award the contract for the
construction of George Pingle House Restoration and Addition, based on the
results of the subcontractor tendering process.
And that funding for the general contractor fee in the amount of $64,890
be from account number 063-5350-4906-5350 for the
construction of the George Pingle House Restoration and Addition.
This report is to present a construction strategy for the George Pingle
House Restoration and Addition (Pingle House project). It is also to obtain Council approval to hire Bondfield Construction Company Limited
(Bondfield) to act as the general contractor for the construction of the Pingle
House project.
BACKGROUND:
On
During the summer, the design was
completed. It was submitted for site
plan approval on
Heritage Markham and the Accessibility
Committee have reviewed the design and their comments have been incorporated
into the final design.
The working drawings have been completed and
were submitted for building permit review on
The next step is to select a general contractor
to construct the Pingle House project.
DISCUSSIONS/OPTIONS:
1)
The
Pingle House project is integrated with the community centre project
The
Pingle House project is located on the same site as the construction of the Angus
Glen Community Centre and Library (the community centre). Therefore, it is currently surrounded by the
construction activity generated by the community centre. Bondfield is the general contractor for the
construction of the community centre.
In order to allow the facility to be in service
for the fall training season and to eliminate any disruption to the community
centre from the construction of the Pingle House project, the completion date
for this project has been targeted to coincide with the completion of the
community centre during August of 2004.
The
Pingle House project and the community centre project are integrated in the
following ways:
·
Both the construction and permanent access to the Pingle House project
site will be through the community centre site
·
Hydro, telephone, and data services will be provided directly from the
community centre
·
Water, sanitary, and storm services will be to the service lines
constructed for the community centre
·
The macro landscaping will be completed as part of the community centre
contract
2) It is not feasible to utilize the standard competitive tendering process for the construction of the Pingle House project
The Town's Purchasing By-law
generally requires selection of a general contractor by competitive
tender. There are, however, exceptions
provided in the Purchasing By-law, for certain circumstances, including "...
where the immediate purchase of goods or services is essential to prevent
serious delays, further damage or restore minimum service."
The
construction of the Pingle House project with a contractor other than Bondfield
would result in the concerns listed below:
·
Construction activity from the Pingle House project site would impinge on
the Bondfield site, resulting in coordination issues that would increase costs
of both projects
·
Having two general contactors working simultaneously on site could lead
to the Town being deemed to be the “contractor” for the projects which would
place significant liability on the Town (rather than the general contractors)
for health and safety
·
Having a different contractor connecting to servicing under Bondfield’s
control could affect the warranty on the servicing
Given these concerns and to ensure a competitive
tender process, the Pingle House project could only proceed after the Bondfield
contract for the community centre was completed. This would result in a 6 - 8 month delay in
the completion of the Pingle House project.
The delay in
the construction of the Pingle House project would delay the use of the
facility for Town staff training and for community use. In addition, it would
be inconvenient to the community centre patrons.
Lastly,
separate construction of the Pingle House project would result in damage to the recently
completed paved and landscaped areas of the community centre project,
necessitating expensive repair work. This would increase the project cost.
For the
above reasons, it is recommended to hire Bondfield as the general contractor
for the Pingle House project.
3) Bondfield should be hired as the general contractor for the Pingle
House project
However,
a process to ensure that the Town receives the lowest possible price for the
project from Bondfield must be established.
The cost of a construction
contract consists of two major components as described below:
1.
The cost of the various subcontractors engaged to perform the work
2.
The general contractor’s fee to organize and supervise the various
subcontractors
a) Subcontract Work
In order to ensure the lowest cost for the
subcontracted work, a competitive process for selecting the various
subcontractors to construct the facility is required. This can be achieved by
hiring Bondfield to provide the following tendering services:
·
Prepare a tendering and construction schedule
·
Prepare a detailed project budget
·
Provide a cost control program
·
Review the drawings and specifications for omissions, conflicts, and
overlaps
·
Divide the drawings and specifications into the appropriate subcontracts
and tender the work to at least three qualified subcontractors for each sub
contract (in consultation with the Heritage Section for those components
requiring special heritage conservation techniques)
·
Analyze the bids received and recommend awards to the Town
·
Assemble the bids to create one contract price
This process would ensure competitive
selection of the various subcontractors required to construct the Pingle House
project. It also would allow the Town to participate in the selection of the
subcontractors.
b) Contractor’s
Fee
Once the subcontractors have been selected,
Bondfield would assume the role and responsibilities of a general contractor
for the facility as defined by the standard CCDC 2 Stipulated Lump Sum Price
contract.
The quote submitted by Bondfield to provide the
above general contractor services for the construction of the Pingle House
project for the fee is $63,000 exclusive of GST. A copy of the quote is
included as Appendix “B”.
The amount of this fee is within the estimate of the
cost of the General Requirements included in the architect’s cost estimate for
this project. It represents approximately 12% of the total cost estimate of the
project.
The general contractor fee will be added to the
consolidated subcontractor bids to provide a Stipulated Lump Sum Price contract
to complete the Pingle House project.
Bondfield has considerable experience and expertise
in all aspects of construction including restoration projects. They have
performed well on the construction of the Angus Glen Community Centre and
Library.
For the reasons described above, it is recommended
that Bondfield be hired as the general contractor, including providing the
subcontractor tendering services, for the construction of the Pingle House
project as detailed above. Once all the subcontractors have been selected and a
final price has been determined for the project, a report will be submitted to
Council to award the CCDC 2 Stipulated Lump Sum Price contract to Bondfield.
This
matter was discussed at the Executive Steering Committee. They concur with the
recommendation contained in this report.
FINANCIAL CONSIDERATIONS:
The current project cost
estimate for the Pingle House project is included as Appendix “C” of this
report. All costs include 3%GST.
The cost estimate is summarized
below:
Construction Costs $592,250
FF&E
including IT
$207,100
Internal Costs $ 66,
330
Total
Project Cost Estimate
$865,680
The proposed funding sources
are listed below:
Exist Angus Glen Budget
Project No. 4906 Pingle House $309,000
Project No. 4737 Project
Management Fees $ 35,430
Miscellaneous Project Lines $ 48,250
$392,680
2004 Capital Budget
Furniture, Fixtures &
Equipment $107,000
Information Technology $100,100
Construction of Addition $265,900 $473,000
Total Funding
$865,680
The original allowance for this
project in the community centre project budget was $309,000.
This allowance was for the
restoration of the existing house and did not include the 1200 square foot
addition. An additional $265,900 is required to construct the addition.
It was hoped that this amount
could be funded from the contingency funds in the community centre project.
However, at this stage of the community centre construction, it is evident that
these funds will be required to complete the community centre construction.
For this reason, an amount of
$265,900 has been included in the 2004 Capital Budget to complete this project.
It should also be noted that
the 2004 Capital Budget includes $107,000 for Furniture, Fixtures and Equipment
for the new facility and $100,100 for Information Technology.
Funding for the general contractor
fee will be from the project established for the of the Pingle House project in
the Angus Glen Community Centre and Library budget.
DEPARTMENTS CONSULTED:
The Human Resource Department, Heritage Section of the Planning and Urban Design Department, Purchasing Department, and the Legal Department has been consulted in the preparation of this report.
ATTACHMENTS:
Appendix
“B” - Bondfield
Quote to perform the General Condition services of a General Contractor for the construction of the George Pingle House Restoration and Addition.
Appendix “C” – Pingle House Restoration And Addition Project Cost Estimate
______________________________________
Stan Bertoia, P.Eng.
General Manager
Construction &
Utilities
_________________________________ _______________________________
Peter Loukes, P.Eng. Director
of
Jim Sales, Commissioner of
Operations & Asset
Management Community and
Fire Services
