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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