PCL was the construction manager for the downtown arena project.
- local construction company, and the largest contracting organization in Canada
- experience working on many large projects including the Edmonton International Airport Terminal Building Expansion
PCL was hired to prepare the Guaranteed Maximum Price (GMP) for the downtown arena project. Upon presenting a GMP that was on budget and accepted by the City and the Katz Group in February, 2014, PCL was hired as the construction manager for the arena project.
The Selection Process
The City of Edmonton issued a Request for Proposal (RFP) in January 2011. The RFP covered both pre-construction and construction criteria as it is common practice for the pre-construction manager to become the construction manager in a GMP process.
Criteria considered in the evaluation of the construction managers included:
- Experience and availability of personnel for pre-construction and construction phases
- Pre-construction services, procurement plan, cost controls and schedule
- Familiarity with this type of building and understanding of the overall scope of work
- Understanding of the project approach
- Fees for pre-construction services and construction services, direct costs and change order mark ups
- Plans to identify, encourage and aid disadvantaged or underemployed residents of downtown Edmonton into becoming qualified workers and providing them an opportunity to participate in the project
A fairness advisor aided the selection process. PCL received the highest score of all proponents and was selected as the pre-construction manager for the arena project.
GMPs Mitigate Risks
Why use a GMP process?
A GMP helps mitigate the risks involved with a project such as the downtown arena. Without a GMP, the final cost would be unknown until the design was completed and construction firms bid on the contract. The GMP also mitigates the risks of schedule overruns.
The GMP process allows the construction manager to be involved in the design phase of the arena. This leads to improved designs as the team can collaborate to identify design alternatives that help the project stay on budget and on schedule.
Although this was the first City of Edmonton project to use a GMP process, GMPs are often used for large-scale projects. For example, this format has been used at other public institutions recently built in Edmonton including the Mazankowski Heart Institute, the Robbins Pavilion at the Royal Alexandra Hospital and the new Royal Alberta Museum. With a GMP, the contractor is responsible for cost overruns.