Toronto Pearson Airport - Terminal Expansion Project Presentation

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Toronto Pearson Airport Terminal Expansion Project - Procurement Strategy Presentation

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  • Toronto Pearson Airport - Terminal Expansion Project Presentation

    1. 1. Toronto Pearson Airport Terminal Expansion Project Presented by: Ahmed Mahmoud
    2. 2. Toronto Pearson Airport - Terminal Expansion Project Topics  Introduction  Procurement Strategy  Change and Conflict Management  Recommendations & Conclusion
    3. 3. Introduction
    4. 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. 5. Toronto Pearson Airport - Terminal Expansion Project Introduction Best approach to solving these challenges: A TERMINAL EXPANSION PROJECT!
    6. 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. 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. 8. Toronto Pearson Airport - Terminal Expansion Project Introduction
    9. 9. Procurement Strategy
    10. 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. 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. 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. 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. 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. 15. Toronto Pearson Airport - Terminal Expansion Project Procurement Strategy Project Organization
    16. 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. 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. 18. Recommendations & Conclusion No procurement strategy is faultless
    19. 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. 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. 21. Thank You!

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