June 25, 2008

Canadian Construction Association Board Meeting

CCA sets up P3 task force

PATRICIA WILLIAMS

staff writer

The Canadian Construction Association (CCA) is setting up a task force to ensure its members are up to speed on public-private partnerships.

“The intent is to keep our members apprised as the process evolves and as more public-sector owners in Canada opt for this method of project delivery,” said CCA chair Paul Charette.

While terms of reference must be fleshed out, the task force will include representation from all four CCA councils. Establishment got a green light at the CCA’s recent board meeting.

“(P3) is an important trend,” said Francis Pomerleau, vice-president of construction at Pomerleau Inc. in Ottawa and chair of the general contractors council. “It’s a train that is coming. We’d better be ready.”

His council spearheaded the initiative.

At a March meeting, concern was expressed on several fronts about the partnerships: that bundling of projects could exclude smaller contractors; that not all firms have the capacity, knowledge or experience to compete for these projects; and that significant costs are involved in preparing proposals.

The council appointed a group to gather information on the use of P3s across Canada.

Speaking at a council meeting recently, Pomerleau said one issue facing contractors is risk management.

Small and medium-sized contractors, in particular, need guidance in this area he said.

“Public-private partnerships present a lot of opportunities but also dangers,” he said, noting that the P3 procurement process differs across the country,” Pomerleau explained.

“This has created a gold mine for law firms.”

The task force is expected to hold its inaugural meeting this summer.

Charette, CEO of Bird Construction Co., said the association is certainly not opposed to public-private partnerships.

His firm, last year was selected by Infrastructure Ontario to build and finance a youth justice facility.

“We’re just more concerned about how our members can participate,” Charette said.

“Obviously, participating means you have to have an understanding of how the process works. It is a very complex process.”

The newly minted task force will operate within the CCA’s standard practices committee.

At the board meeting, Walter Strachan, chair of the Canadian Design-Build Institute, offered his organization’s assistance to the task force.

The institute has produced various guides, including one on principles for selection of a design-builder.

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