Update on PCL Change Order Request

July 28 2014

Earlier this year the City received a change order request from PCL Constructors Westcoast seeking an increase of $7.9 million from their current contract of $62.9 million. PCL’s request also seeks a five and a half month extension to the project timeline.

The City is working with an independent evaluator (Turnbull Construction Services Ltd) to review and evaluate the change order. The evaluation will follow well established procedures for change order evaluations and is expected to take several months to complete.

Once the City has completed its evaluation, further discussions and negotiations with PCL will follow. The process is expected to take some time to complete and there is no firm timeline for final resolution of this issue. Any agreement will be subject to Council approval.

In the interim, staff have committed to providing Council with a financial update on the project in September.

Change order requests are not unusual in large projects of this nature and are the typical mechanism for contractors to present potential changes. Terms and conditions outlining the process for resolution have been included in the City’s contract with PCL.

As the matter proceeds, the City will continue to perform due diligence to ensure that the interests of Victoria tax payers are protected. In the meantime the bridge continues to be built to the highest standards.

Over the past few months, PCL, the City and MMM Group (the designer and primary consultant to the City for the bridge project) have taken measures to accelerate work where possible, improve communications and foster a more collaborative approach moving forward.

The City has a contract with PCL for $62.9 million and a construction contingency of $2.815 million.

PCL’s contract includes construction of a new bascule bridge with new road approaches, widened sidewalks and new pathways, and the creation of three new public plaza areas. The contract also includes removal of the old bridge once the new bridge is open and construction of a retaining wall near Harbour Road.

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