Canadian Lawyer InHouse

Apr/May 2011

Legal news and trends for Canadian in-house counsel and c-suite executives

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By Bradley N. McLellan and Daniel P. Ferguson, partners, WeirFoulds LLP Inside infrastructure You are the in-house corporate coun- sel at Build-It, a well-known Ontario company that specializes in designing and building all types of infrastructure throughout Canada. A couple of weeks ago, Build-It received a request for proposal, an RFP, from a large Ontario municipality. The RFP relates to a significant rapid transit system infra- structure project that the municipality wishes to undertake with the private sector as a public-private partnership. The rapid transit system and stations would be on land the municipality already owns and would continue to own. The municipality would own all of the rapid transit vehicles. Build-It is very interested in this infrastruc- ture project and would like to form a consortium and submit a proposal in response to the RFP. Since the project involves planning, designing, constructing, financing, operating, and maintaining the rapid transit system, Build-It proposes that the consortium also include a specialist in planning and environmental assessment, a potential lender, and a company that specializes in the operation, main- tenance, and repair of rapid transit systems. In addition to the RFP, which one or more of the following acronyms might you see in a procurement process for an infrastructure project like this? The proposed structure of the rapid transit project is a privatization. You have been asked whether the structure of this P3 transaction would be a "DBFOM." What is your response? An appendix to the RFP is a design-build contract. It requires that the private-sector company or consortium undertaking the design-build work disclose the hourly rates of the design builder's employees who will be working on the rapid transit project. Build-It does not like to disclose the hourly rates of its various team members because it does not want its competitors to have this information if it becomes public. A senior executive of your company has asked you whether you can be certain that such confidential information will not be publicly disclosed if the company signs a design-build contract with the municipality. What is your answer? INHOUSE APRIL 2011 • 13 2 3 a) 4 b) es No a) Y b) es No Y b) RFEI c) RFQ 1 a) b) rue False a) T BAFO

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