A Programmatic Approach to Delivering State of Good Repair, Accessibility, and Net Zero Programs at City Hall and Metro Hall

It also supports long‑term financial sustainability by reducing the state of good repair backlog and mitigating the risk of costly operational failures. Prolonging this work can lead to escalations in future state of good repair costs, as asset deterioration becomes increasingly complex and expensive to remediate over time. Through this work the City is also required to achieve compliance with relevant Ontarians with Disabilities Act legislation. This report outlines the Construction Management delivery model that will be used to ensure this project is delivered within the approved capital budget and schedule. The procurement process to obtain a Construction Management through the Negotiated Request for Proposal Doc5378109215 will be awarded subject to the successful conclusion of negotiations and the appropriate procurement approvals; it is anticipated to be awarded by the end of March 2026. This report: 1. Provides an update on the competitive procurement process to obtain a construction manager through the Negotiated Request for Proposal Doc5378109215; and, 2. Seeks delegated authority to perform purchase order amendments for the duration of this project to allow for the timely execution of trade contracts, necessary cost adjustments, and to mitigate the risk of delays and exposure to market fluctuations. The Construction Management project delivery model is an industry-recognized approach that provides greater cost certainty before construction begins and enhances owner oversight. Under this model, the competitively procured Construction Management assumes financial responsibility for delivering the project within an agreed guaranteed maximum price, thereby shifting a portion of project risk away from the City. Part of the success of the model relies on incorporating real-time market pricing, by tendering trade contracts competitively in sequence prior to the commencement of each phase of the project. The authorities sought in this report would eliminate the need for Council and / or Committee authority for each purchase order amendment, allowing for the timely execution of necessary contracts and adjustments.

the execution of the construction management agreement between the City and the successful supplier of the Negotiated Request for Proposal, and for which Committee or City Council approval would normally be required under City of Toronto Municipal Code Chapter 71, Financial Control By-law and City of Toronto Municipal Code Chapter 195, Procurement, for the provision of construction and construction management services and carrying out the construction of the state of good repair, the Accessibility for Ontarians with Disabilities Act, Net Zero, and the modernization programs, provided that: a. a governance model is established by the Executive Director, Corporate Real Estate Management, in consultation with and in a form satisfactory to the Chief Procurement Officer, to ensure the competitiveness of the Construction Manager's third-party contracts to develop a Guaranteed Maximum Price; b. the purchase order amendment is necessary to meet the timelines of the Programs, and is included within the scope of Negotiated Request for Proposal Doc5378109215; c. the funds are available through, and the cumulative value of the original contract and any subsequent purchase order amendments does not exceed the 2026-2035 Capital Budget and Plan amount of $300 Million; d. the procurement processes were completed in accordance with the Supplementary Conditions of the industry standard Construction Management Contract, and associated policies and procedures established between the City and Construction Manager; e. there are no material risks as to the merits of making the amendments to incorporate the works obtained under the construction management agreement; f. the terms and conditions of any amending agreements are acceptable to the Executive Director, Corporate Real Estate Management and in a form satisfactory to the City Solicitor; and g. a report summarizing any amendments made under this authority is submitted to the appropriate Standing Committee and / or City Council for information every second and fourth quarters of each year, beginning in 2027, on the progress made and on any purchase order amendments issue.