Amendment to Purchase Order Number 6052967 with Coolearth Architecture Inc., for the Mount Dennis Early Learning and Child Care Centre Project

As a result, the Mount Dennis Early Learning and Child Care Centre opened to the public in September 2025. The Mount Dennis Early Learning and Child Care Centre project was delivered with Coolearth serving as prime consultant, and M.J. Dixon Construction Ltd. ("MJ Dixon") as general contractor. Construction began in June 2020 during the COVID-19 pandemic, resulting in delays related to public health restrictions and supply chain disruptions. These issues were managed through the resolution provisions in the contract between the City and MJ Dixon. The project reached substantial completion in September 2024, 17 months beyond the anticipated completion date. Upon substantial completion, the City identified several outstanding deficiencies for MJ Dixon to address. Despite formal notice of default in June 2025, MJ Dixon did not resolve the deficiencies within the required timeline and was formally terminated in July 2025. City staff, with Coolearth's support, estimate the cost to correct all deficiencies at approximately $386,978 (net of Harmonized Sales Tax). This amount has been withheld from MJ Dixon, who disputes both the validity and valuation of the identified items. The parties are engaged in dispute resolution, with the potential for litigation should the matter not be resolved. As a result of the extended construction period, Coolearth has submitted a claim to increase its fee for contract administration services, reflecting an additional 17 months beyond the original anticipated completion date. In addition, Coolearth continues to oversee completion of the corrective work through alternate contractors and to support the City in its ongoing dispute‑resolution process with MJ Dixon. The requested purchase order amendment amount includes the claim for past services rendered as well as future services as required to oversee the completion of the corrective work. After several months of detailed review and negotiations, City staff recommend a purchase order amendment in the amount of $374,449 net of all applicable taxes and charges ($381,039 net of Harmonized Sales Tax recoveries), increasing the current purchase order value from $295,910 net of all applicable taxes and charges ($301,118 net of Harmonized Sales Tax recoveries) to $670,359 net of all applicable taxes and charges ($682,157 net of Harmonized Sales Tax recoveries). Staff also recommend extending its contract period to December 31, 2027 to enable sufficient time to correct the outstanding deficiencies, continue to work through the dispute resolution process and any potential litigation support if City staff determine their assistance is necessary and appropriate.

amend Purchase Order Number 6052967 issued to Coolearth Architecture Inc., in accordance with section 71-11.1C of the City of Toronto Municipal Code Chapter 71 (Financial Control Bylaw), to settle the claims identified in recommendation 1a, by increasing the overall value by the same amount of $374,449 net of all applicable taxes and charges ($381,039 net of Harmonized Sales Tax recoveries) increasing the current purchase order value from $295,910 net of all applicable taxes and charges ($301,118 net of Harmonized Sales Tax recoveries) to $670,359 net of all applicable taxes and charges ($682,157 net of Harmonized Sales Tax recoveries) and extending its contract period to December 31, 2027.