Toronto Pearson Airport Terminal Expansion Project - Procurement Strategy Presentation

1. Toronto Pearson Airport
Terminal Expansion Project
Presented by:
Ahmed Mahmoud

2. Toronto Pearson Airport - Terminal Expansion Project
Topics
 Introduction
 Procurement Strategy
 Change and Conflict Management
 Recommendations & Conclusion

3. Introduction

4. Toronto Pearson Airport - Terminal Expansion Project
Introduction
GTAA needs to address the following challenges:
1. Rapid increase in passenger volumes and cargo movement;
2. Overcrowding; and
3. Overall efficiency of the airport

5. Toronto Pearson Airport - Terminal Expansion Project
Introduction
Best approach to solving these challenges:
A TERMINAL EXPANSION PROJECT!

6. Toronto Pearson Airport - Terminal Expansion Project
Introduction
Aviation Activity & Forecast
Actual Forecast
Year 1990 1995 2000 2005 2010 2015 2020 2025 2030
Passengers 22 22.4 28.9 29.9 36 42.9 50.3 58.1 66
In 2010, approximately 36 million passengers passed through Toronto Pearson
Forecast of 58 million passengers by 2025

7. Toronto Pearson Airport - Terminal Expansion Project
Introduction
Terminal Expansion Project Components
 Terminal 1 Expansion of 400,000m²;
 Three piers G, H & I to be built: Pier G will provide 18 gates; Pier H will provide 31
gates and Pier I will provide 14 gates;
 New pedestrian tunnel connection to GO train platform;
 New parking facility will provide 4,000 parking spaces;
 New pedestrian tunnel connection between new parking facility and Terminal; and
 New baggage claim areas.

8. Toronto Pearson Airport - Terminal Expansion Project
Introduction

9. Procurement Strategy

10. Toronto Pearson Airport - Terminal Expansion Project
Procurement Strategy
Project delivery method
The recommended project delivery method is Construction
Management at Fee
Why Construction Management
 The effective use of available funds
 Enhanced control of the scope of the work
 Optimum project scheduling options
 flexibility in procurement options
 Strategies to avoid delays, changes and claims
 Assist in Design Consultant selection
 Enhanced design and construction quality

11. Toronto Pearson Airport - Terminal Expansion Project
Procurement Strategy
Project delivery method
As a best practice major airport owners selected construction management
project delivery over other methods, for example the following International
Airports:
 Toronto Pearson
 London Heathrow
 Seattle-Tacoma
 Philadelphia
 San Francisco
 Los Angeles
 Cairo
 Jeddah
 Dubai
 Abu Dhabi
 Muscat
 Doha

12. Toronto Pearson Airport - Terminal Expansion Project
Procurement Strategy
Procurement Model
The recommended procurement model is the
Traditional Model (Design-Bid-Build)
Why traditional procurement model
 This model is widely applicable, well understood, and
clearly defined roles for the parties involved.
 This model is the most common approach for public
owners having to comply with regional, provincial or
federal procurement statutes.
 The owner has a significant amount of control over the
end product.

13. Toronto Pearson Airport - Terminal Expansion Project
Procurement Strategy
Scheduling Approach
The recommended scheduling approach is the
Sequential Approach
Sequential versus Fast-Track
 In sequential construction, construction does not begin until design is complete.
 In Fast-Track construction, design and construction activities overlap, with the goal
of reducing the overall time required to complete a project.
 Phased construction also introduces more complexity into the design process and
increases the potential for costly design errors.
 project estimated duration is not required to be fast-tracked.
 it’s required to be simple with minimum risk allocation.

14. Toronto Pearson Airport - Terminal Expansion Project
Procurement Strategy
Forms of Agreement
Legal relations
Owner + Construction Manager = Management Services Contract;
Owner + Design Consultant = Design Services Contract;
Owner + General Contractor = Construction Services Contract.
Owner Issuing Organization
Construction Manager CCDC 5A Canadian Construction Documents Committee
Design Consultant RAIC Document 6 Royal Architectural Institute of Canada
General Contactor CCDC 2 Canadian Construction Documents Committee
CCDC 5A 2010 Construction Management Contract – For Services
RAIC Document 6 2006 Canadian Standard Form of Contract for Architectural Services
CCDC 2 2008 Stipulated Price Contract

15. Toronto Pearson Airport - Terminal Expansion Project
Procurement Strategy
Project Organization

16. Toronto Pearson Airport - Terminal Expansion Project
Procurement Strategy
Procurement Strategy Benefits
Using hybrid procurement strategy of construction management as a project
delivery method with traditional procurement model and sequential construction
approach will maximize the advantage of each method and minimize the concerns
of each one if used separately; which will lead to minimum risk allocation and best
value for construction dollar as briefly listed as follows:
 Development teams selection based upon qualifications.
 Owner can select sub-contractors/sub-consultants.
 Can be fast-tracked; if requested by the owner.
 CM responsible to deliver the project on budget and on schedule.
 Defined roles/responsibilities for the development teams.
 Initially presents the lowest potential cost for the project.
 Design change claims during construction are the minimum compared to other
strategies.

17. Toronto Pearson Airport - Terminal Expansion Project
Procurement Strategy
Procurement Strategy Benefits
Why P3 is not recommended
There has been increasing discussion recently of P3 financing for airport projects as
a response to the tightening of availability of financial resources for airports.
 P3 is not recommend for the terminal expansion project because it has conflict of
interest between the private investor and the public entity serving the taxpayers
interest;
 plus the partial risk and control to an outside entity for such a strategic facility;
 It is suitable for services & maintenance facilities where owner control is
non‐critical, through a limited and controlled scope.

18. Recommendations &
Conclusion
No procurement strategy is faultless

19. Toronto Pearson Airport - Terminal Expansion Project
Recommendations
 Effectively communicate to the various development project team members, It is
important that all parties understand and commit to the owner’s expectations.
 Ensure that the terms and conditions of the various contracts reflect the goals,
objectives, issues, and expectations for the project owner;
 Consider legal assistance experienced in construction matters for crafting the
contract language;
 Commit to the appropriate level of owner involvement;
 Assess potential risks and plan how to manage the overall project via a
professional construction management consultant.
 Consider using alternate dispute resolution (ADR) approaches such as, dispute
review boards, or similar alternatives.
 Finally, Define how such disputes will be handled so that disruption and
cost/schedule impact are minimized.

20. Toronto Pearson Airport - Terminal Expansion Project
Conclusion
No procurement strategy is faultless. But, choosing the system that
best works for this specific project and actively ensuring that it is
properly implemented, can mean the difference between the success
and failure of your project.
If the terminal expansion project is undertaken it will address the
demand and be designed to provide a better flow of passengers,
baggage and new commercial retail offerings all designed to enhance
the customer travel and service experience and solidify Toronto
Pearson as a truly global hub, attracting passengers from around the
globe.

21. Thank You!