Increasing Fees in Construction Contracts

I chaired the Public Works and Infrastructure Committee in summer 2015 where we approved a pilot to apply acceleration and delay costs in construction contracts.

The goal is to reduce congestion by speeding up construction on city roads, particularly high-traffic corridors.

The pilot has a two-pronged approach:

  • Financial penalties for construction delays
  • An innovative tendering process that considers both overall cost and completion time

Other jurisdictions, including Ottawa and York Region, have had success in applying acceleration and delay costs to high-priority construction projects.

City staff will report back on the pilot to the Public Works and Infrastructure Committee in 2017.

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