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ORC awards three regional contracts for project-management services

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by Patricia Williams

As part of the re-engineering of its construction project delivery model, the Ontario Realty Corporation (ORC) has awarded three regional contracts for the provision of project-management services.

Ontario Realty Corporation

As part of the re-engineering of its construction project delivery model, the Ontario Realty Corporation (ORC) has awarded three regional contracts for the provision of project-management services.

For the most part, these project management service providers (PMSPs) will engage consultants and call tenders on projects valued at up to $5 million in their respective regions. In Toronto, however, projects valued between $1 million and $5 million will be shared among the three firms.

Projects valued at more than $5 million will be managed by one of the three companies or by firms selected from the marketplace.

In the past, the provincial Crown corporation performed these services internally. It then began to engage outside PMSPs to carry out some work. ORC now is outsourcing the lion’s share of this work.

The regional contracts have been awarded to:

• CB Richard Ellis — Toronto, southwestern Ontario and northwestern Ontario.

• HPM Project Managers — Central Ontario (excluding Toronto), northeastern Ontario.

• SNC-Lavalin ProFac Inc.— Eastern Ontario.

In a release, the strategic opportunities committee said ORC will continue to develop details of the transition to its modernized delivery model with the PMSPs. In general, projects already underway will proceed under pre-existing delivery approaches.

As the transition is implemented, new projects will come under the re-engineered model. This will include, for example, employment of new contracting arrangements such as the use of CCDC 2 with a standard set of supplementary conditions, endorsed by the industry, as the standard form of construction contract.

The full launch is targeted for spring 2009.

“This is a key milestone in modernizing our delivery model,” said Mike Greidanus, ORC’s senior vice president, project services.

“These new relationships will better align our own and our supply chain’s business goals and results to the needs of our clients.”

Another important element of this new model is the maintenance by ORC of vendor of record (VOR) bid lists for consultants and contractors. The PMSPs will select from this common source of bidders.

ORC issued initial Requests for Qualifications (RFQs) last fall to begin building the VOR lists for architects, contractors and interior designers. It is in the process of evaluating the submissions and expects to notify respondents of their results early this year.

These RFQs will also re-open, potentially as soon as this month.

The re-opening will be posted on the ORC website and elsewhere. This will provide an opportunity for those who may have missed the first RFQs to respond. An RFQ for consulting engineers is planned in the near future.

The Ontario Realty Corporation is a major customer of Ontario’s design and construction sector, awarding an estimated $350 million in contracts annually.

The strategic opportunities committee has representation from key industry organizations as well as ORC itself.

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