Canadian Lawyer InHouse

37 CANADiANLAWyERMAG.CoM/iNhousE april 2014 I n d u s t r y S p o t l i g h t '' We have nine sports facilities from pools to soccer stadiums to fi eld hockey venues. They are well underway. berT clarK, infrastructure ontario '' More than $730-million in capital spending is being budgeted to build sporting venues around the Greater Toronto Area, accord- ing to documents from the Toronto 2015 Pan Am Organizing Committee In addition to the sports facilities, which are located in various parts of the GTA, there is also the Athletes' Village being built downtown. The lion's share of the overall Pan Am capital-spending budget is allocated to three bundles of projects being built using a public-private partner- ship model overseen by Infrastructure Ontario, as is the Athletes' Village. The P3 projects, like the games, attract- ed interest from around the world. Tobor Emakpor, an infrastructure lawyer at Osler Hoskin & Harcourt LLP in Toronto who worked with some groups that bid on projects, says, "there were quite a few foreign players that joint-ventured with local fi rms." One thing that stood out for him was how Infrastructure Ontario was "success- ful in getting things procured on a short time frame." The projects break down as follows: buNDLE oNE The CIBC Pan Am/Parapan Am Aquatics Centre and Field House high-performance aquatics and athletics facility will be constructed on the University of Toronto Scarborough campus budgeted at $248 mil- lion. It will cover aquatics (diving, swim- ming, synchronized swimming), fencing, and pentathlon. PCL Aquatics Centre 2012, a joint venture between PCL Constructors Canada and NORR Ltd., is building it. buNDLE TWo This bundle covers four projects and is being built by Ontario Sports Solutions, a consortium that includes Bouygues Build- ing Canada Inc., a France-based builder, Kenaidan Contracting Ltd., CannonDe- sign, FaulknerBrowns Architects, and Arup Construction. It includes the CIBC Pan Am stadium in Hamilton, a $146-million facility that will become the new home of the Canadian Football League's Hamilton Tiger-Cats. The $52-million CIBC Pan Am Athlet- ics Stadium, which is being built at York University, will cover athletics. There is also an accompanying $3-million Toronto Track and Field Centre, a warm-up and training facility for athletes. The $56-million Milton Pan Am Velo- drome for cycling is being built in the town of Milton. buNDLE ThREE Bondfi eld Construction Company Ltd. won bundle three. It includes the $85-million Markham Pan Am Centre, which will host badminton, table tennis, and water polo. The Pan Am Fields, home of fi eld hockey, is a $12-million facility being built on the downtown University of Toronto campus. The Etobicoke Olympium, an aquatics training centre, is expected to cost $20 million. AThLETEs' viLLAGE In addition to the sports facilities, there is also the $514-million Pan Am Athletes' Village, which is located on the West Don Lands near downtown. It's an alternative fi nance project being built by Dundee Kilmer Developments Ltd., a consortium whose team includes: Dundee Realty Corp., Kilmer Van Nostrand Co. Ltd., EllisDon Corp., Ledcor Design Build (Ontario) Inc., Brookfi eld Financial Corp., and architects Kuwabara Payne McK- enna Blumberg, Daoust LeStage Inc., and TEN Arquitectos. Most of the projects are on time and many are under budget, some by millions of dollars. Only the Velodrome is over budget. That according to recent Infrastructure Ontario statistics, which show of the 30 AFP projects substantially completed to date, 29 were under budget and 22 were fi n- ished ahead of schedule. The $12.9 billion in awarded contracts delivered $2.65 billion in savings over the approved budgets. The games kick off July 10, 2015, and that means everything must be ready on time. Charles Caza, general counsel for Bird Construction Inc., which put together a consortium to bid on some projects but was unsuccessful, said in a project like this "time is especially critical. It was well com- municated to us that we were not going to fi nish after the events. It's always a risk to take on an aggressive schedule. Here, you just can't miss." Lawyers say the Pan Am games are ad- vancing the development of P3 and AFP projects in a couple of ways. First, the projects were all issued using the design, build, and fi nance model (DBF), without any maintenance (DBFM) or operations component (DBFMO). Clark says DBF "is a delivery model that we're using for prob- ably over half the projects in our current pipeline." The decision to do a DBF versus a DBFM or DBFMO depends on the project, he says. Adding maintenance or operations components forces builders to stand behind their work for as many as 30 years, which is attractive, Clark says. However, in some cases "it doesn't make sense to do that." For example, a DBFM or DBFMO doesn't work well in situations like building a hospital wing, where the structure is tied into exist- ing mechanical and electrical systems, or if there is already a maintenance structure in place, such as a new building on a cam- pus, which already has people dedicated to operations. "There is a lot of thinking that goes into one delivery model over another." In this case, the projects are being turned

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