Toronto infrastructure contractor groups call on city to change construction processes
Three Toronto infrastructure contractor groups are calling on the City of Toronto to make major changes to how it procures and schedules construction projects.
The Toronto and Area Road Builders Association (TARBA), the Greater Toronto Sewer and Watermain Contractors Association (GTSWCA) and the Heavy Construction Association of Toronto (HCAT) are calling on the city to improve procurement practices to accelerate project timelines, mitigate traffic congestion, and reduce overall costs.
Together, the three associations’ members deliver approximately 75% of the City of Toronto's total construction capital spend.
"We are still using infrastructure that was put in place by our grandparents, and we are now seeing the impacts of underinvestment from past decades with this summer's flooding and ongoing lack of affordable housing," said Patrick McManus, Executive Director of GTSWCA. "With Toronto's continued growth and changing climate, delaying investments and halting construction is not an option, and less bureaucratic delays will only help get projects built faster and reduce continued traffic congestion."
The associations have proposed five solutions to accelerate construction timelines, alleviate traffic congestion, and reduce taxpayer costs.
First, they say that if the city were to tender and award capital projects—particularly linear infrastructure like road maintenance and sewer expansion—in late fall or early winter for the following year, it could maximize the number of working days within the construction season, and may receive more competitive pricing.
The associations say the current practice of awarding these projects in the spring or even summer restricts the timeline needed to complete the work, and nearly guarantees that some projects must roll over and be completed in the following year.
Because other GTA municipalities approve their capital budgets in December, they are able to award projects earlier, receive more competitive pricing, and commit contractors to the work. Toronto as a result is left with a smaller pool of bidders and likely higher pricing.
Second, the groups advocate for incentives to deliver projects faster. They say that while there are severe financial penalties for projects running late, there are rarely any financial incentives for finishing early or for easing traffic congestion when possible, such as clearing lane closures on weekends or evenings if no work is planned. Built-in incentives for tasks like moving pylons, equipment, and waste containers back and forth can help streamline traffic flow outside construction hours.
Third, they say city project managers should be granted greater powers decide how projects should proceed when a conflict is identified. Toronto’s over-reliance on procurement and legal staff to make these technical engineering decisions creates significant payment disputes and delays on city projects.
The associations say project changes can take weeks (or longer) to be approved. Some must even be approved by city council. Meanwhile, projects sit idle due to complications not identified in the project drawings, such as unmarked ground utilities, archeological ruins, and buried waste.
Given the size and scope of project work in the City of Toronto, the associations say city project managers should be able to approve change orders up to the lesser of 5% of the contract value or $150,000. And for change orders exceeding this value, the city should commit to reviewing and responding to these requests immediately.
Fourth, they say greater coordination is needed both between different projects and within individual projects. Consistent traffic modeling is needed to assess the impact on traffic accurately, and consulting with contractors on traffic plans for projects ahead of the start of construction can significantly reduce any inconsistencies between what is on paper and what can reasonably be implemented in the field.
Taking the time to review upcoming projects and priorities for a specific area can also minimize disruption. For example, coordinating watermain/sewer work, road work, and bike lanes installation and maintenance under the same contract and/or timeline can significantly reduce both building costs for taxpayers and disruption for residents.
Finally, they say the city can do more to promote a culture of innovation on its construction projects. They say that despite bearing nearly all the risk and being responsible for the final project outcome and long-term performance, contractors often have to contend with a risk-averse city administration that is hesitant to adopt new technologies or procurement models. This means that contractors must abide by the city's contract specifications and conditions even when there is a better, faster way to build.