Quote:
Originally Posted by kcantor
i think one of the problems is that this was treated as a single project when in fact is was 20 or 30 or 40 connected but independent projects. when treated as one project, substantial completion for the whole thing doesn't take place until they're all done.
if the city accepted substantial completion for each one of them as soon as they were completed instead of accepting none of them until the end then the risk of component non-compliance with contracts and specifications and standards would be addressed earlier.
we also could have had sections like 102 avenue available for public use after 2 - 3 years instead waiting for 7 - 8. it would be in the contractor's best interests to complete individual pieces earlier as they would be paid earlier. it would be in individual neighborhood's best interests as they would suffer the necessary disruptions for as short a time as possible.
the city could use outside bonding from the contractor or structure overall contractual holdbacks for margins or general conditions to the end so there is still incentive to complete but where the consortium is also being paid to operate and that doesn't start until everything is commissioned and operating. even that could be incentivized with bonus and or penalty payments linked to commencement of service dates. at least if things are late, the city can operate/use its streets in the interim and the contractor can't use the entire system as leverage if it's only one component that needs to be addressed.
as it stands, the city gets it's warranties across the entire system starting at the end of the project if substantial completion for everything is deferred to the end. i think that's a false economy - there is no reason that the warranties should commence on substantial completion for each component and extend until the end of the first year following the completion of the last component.
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Well,
It was specifically issued as a DBOFM P3 model because funding from other levels of Government required that.
The COE doesn't take anything for 25 years, the DBOFM take it from itself or whoever it decides to Subcontract it to. The COE enforces the specifications but for all we know it might be the financing partners making the construction portion replace non-compliant items so they aren't stuck with them failing after operation, thus knocking the line out of service for which I am sure there are even greater penalties.
There are penalties in the Contract for completion and incentives/penalties around operating payments.
The point about warranty is not realistic, no Contractor is going to take substantial completion + undefined period till the last person is complete + 12 months (or whatever period).
I think the deal was structured well enough, the principle is sound, but it missed missed the mark with the Downtown portion not deemed schedule critical.
In so much as a pandemic happened, there might be some good ol litigation happening behind the scenes on that, but I have to say that Transed looked completely over their head the entire time.
In the end it is a rail project and they have a long track record of going poorly and being fraught with litigation no matter who builds them or where.