Metro Vancouver moves to reopen a troubled $ 1 billion North Shore processing plant

The project swelled from an early design-build $ 700 million job that was two and a half years late.

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Over the spring and summer, Metro Vancouver plans to put a significantly delayed, overrun North Shore wastewater treatment plant back on track and, with the help of a new contractor, complete a current $ 1 billion project.

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The Regional District Commission has approved the process of hiring PCL Constructor West Coast with a contract worth approximately $ 40 million for work developing a new plan with Metro Vancouver, including a revised budget and schedule.

“We look forward to officially completing this in the coming weeks,” Metro’s chief administrative officer, Jerry Dobro Volney, said in a statement.

Metro Vancouver signed a deal with Acciona Wastewater Solutions LP, the project’s first contractor, in January after Acciona missed an important milestone and appeared to have “abandoned” the project last fall. Finished.

Acciona Wastewater, a subsidiary of a Spanish multinational company, was hired on a design build finance basis in 2017 to complete a $ 700 million replacement for a two and a half year Lionsgate wastewater treatment facility. It exceeded the schedule and swelled to $ 1.058 billion.

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When Acciona appeared to abandon the project in October last year, it fired 130 of the 180 contractors at the project site, 80% of the design work was completed, and construction was due to be completed by the end of 2023. Was 37 people. Cent completed.

According to Dobrovolny, Metro’s board of directors will consider revising the contract with engineering company AECOM at a meeting on March 25 and will continue to involve the company in the role of record engineer.

Meanwhile, Dobro Volney said Metro and PCL will look for opportunities to complete some of the projects already underway throughout the 2022 season, including concrete work “to keep construction moving forward.” ..

On February 23, staff reported that Metro had spent $ 489 million on the project so far and approved an additional $ 267 million in construction funding in 2022.

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At a meeting on February 23, the Metro Wastewater Committee considered a staff proposal to split the work to complete the construction into two contracts. The first contract will be completed by reviewing the plant design and planning to revise the budget and complete the construction.

Cheryl Nelms, general manager of the project, said the completion of the construction will be awarded in the second contract. This is ideally a PCL if it can offer a guaranteed maximum price to serve the plant.

“This structure allows us to work with someone and come back to you and say,’I want to continue working with this contractor,'” she told the committee.

According to Nerms, Metro began restructuring its wastewater treatment plant as far back as November, looking for qualified contractors interested in the first contract, and seven “very qualified” bidders. I collected it.

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According to Nerms, PCL was selected from a list of three candidates, with a greater emphasis on corporate eligibility than bid prices.

“We were looking into the experience of this contractor as a company taking over and completing a project of similar complexity,” Nelms said, providing local economic benefits and working with local suppliers. Said with ability.

According to Nerms, the experience of mitigating cost increases was an important criterion for selecting contractors on the candidate list.

Nerms said the project had been a problem with rising costs for months.

According to Nerms, the committee can expect monthly updates for the foreseeable future.

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Metro Vancouver moves to reopen a troubled $ 1 billion North Shore processing plant

Source link Metro Vancouver moves to reopen a troubled $ 1 billion North Shore processing plant

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