$1.54 billion contract awarded for Macdonald Block reconstruction project

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Infrastructure Ontario (IO) and the Ministry of Government and Consumer Services (MGCS) have awarded a fixed-price contract to Fengate PCL Progress Partners (FP3) for the Macdonald Block reconstruction project.

The FP3 team includes:

Developers: Fengate Asset Management and PCL Investments Canada

Design-builder: PCL Constructors Canada

Design architect: WZMH Architects

Facilities management: Johnson Controls Canada

Financial advisor: National Bank Financial

The Macdonald Block complex, which consists of four towers and a podium near Queen’s Park in Toronto, is a critical hub of government operations that has never undergone a major renovation since it was completed in 1971.

The contract requires FP3 to: Design, build and finance the reconstruction of the complex; and maintain the complex for 30 years including lifecycle repair and renewal.

The reconstruction project contract is valued at approximately $1.54 billion, which reflects the payments made during reconstruction, the substantial completion payment, and the monthly service payments during the 30-year maintenance period (adjusted for inflation).

The reconstruction project will update all core building systems which have reached the end of their useful life and must be replaced. Extensive remediation work will also be undertaken to remove designated substances from the complex.

Care will be taken to preserve the integrity of its many heritage features. The reconstructed complex will meet current building, health, safety and accessibility standards, accommodate significantly more employees, and reduce the need for approximately 586,000 sq. ft. of expensive third-party leased office space.

With the award of the contract, design work and construction activities will start immediately. Construction is expected to be substantially complete in the spring of 2024 with staged occupancy beginning soon after that.

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