Yeggy
Active Member
Because its built under a p3 model. Certain economic minds will say that limits risk to the city, but it also means that you are just monetizing the risk up front.
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- Thread starter Daveography
- Start date
northlands
Senior Member
Not a P3, it’s design build project delivery. No operations, maintenance or project financing by vendor. I believe only VLSE was built on a P3 delivery model in Edmonton
CplKlinger
Senior Member
VLW is a P3, although there's no operations and maintenance component. I have no idea how that works.
Yeggy
Active Member
Design build is a form of p3 contract.
A P3 may but does not necessarily include things such as operation or maintenance.
CCPPP - Types of P3s
www.pppcouncil.ca
Yeggy
Active Member
Translink is contracted to operate the west.
CplKlinger
Senior Member
TransEd, or something else? What I meant to say was that Marigold is partially financing the project in a P3 arrangement, but won't operate or maintaine the line. The operations is being contracted by the city separately.
Yeggy
Active Member
Sorry yes TransEd, they will be operating the entire valley line
CplKlinger
Senior Member
No worries at all! Where did you hear that? Not doubting you, I'm just curious
Yeggy
Active Member
I want to say speaking municipaly, from one of the city councillors.
Its in the p3 contracts.
J_gordo
Active Member
Huh?
A) this is a design build contact, specifically a CMAR (construction management at risk) procurement; not a P3.
B) the city doesn’t manage the project, but they are the ones who can alter the scope of the project since, you know, they own the project?
Typical of many on this sub, just blame P3’s, apparently even when they aren’t used.
J_gordo
Active Member
Source for this? This hasn’t been announced anywhere
Kosy123
Active Member
Ooof seems like we're not the only ones facing cost overruns
J_gordo
Active Member
All large infrastructure projects are facing the same issues: higher material costs, rising labour market pressures, and a lack of skilled workers. There’s most likely going to be a large reduction in capital projects until costs subside, and the construction industry reduces capacity.
Barnaby
Active Member
Less people are entering the trades. The best workers generally follow the money now. I don't see how a reduction of spending is going to improve the future capacity of the construction industry. I think people are just going to need to get used to modern price changes. It's not my fault that parents pushed their children away from these industries for decades.
J_gordo
Active Member
I meant moreso that governments will wait until the construction industry saturates. There are so many construction projects that were started during COVID that most design - build bids only have 2-3 consortiums at max. I would think governments will wait until that number reaches 5 or 6. Costs will be much lower amid higher competition and stronger consortiums.