HomeMy WebLinkAboutDSD-2025-437 - Q24-016 - Professional Services - Ann Street, Becker Street & Fife Street Reconstruction - Purchase Order ExtensionStaff Report
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Development Services Department www.kitchener.ca
REPORT TO: Planning and Strategic Initiatives Committee
DATE OF MEETING: November 27, 2025
SUBMITTED BY: Garcia, Brent, Mgr. Eng Construction, 519-783-8139
PREPARED BY: Garcia, Brent, Mgr. Eng Construction, 519-783-8139
WARD(S) INVOLVED: Ward 1
DATE OF REPORT: October 10, 2025
REPORT NO.: DSD -2025-437
SUBJECT: Q24-016 - Professional Services — Ann Street, Becker Street, & Fife
Street Reconstruction — Purchase Order Extension
RECOMMENDATION:
That the Purchase Order for providing contract administration and inspection for the
reconstruction of Becker/Ann/Fife issued to GHD Limited (GHD) be increased by
$496,400.34 funded by the Ministry of Transportation (MTO) and an existing surplus
in the project account.
REPORT HIGHLIGHTS:
• The purpose of this report is to seek Council authorization to increase the purchase
order issued to GHD to cover additional costs related to the Q24-016 - Professional
Services — Ann Street, Becker Street, & Fife Street Reconstruction — Contract
Administration and Inspection Services
• The key finding of this report is that additional work was required to complete the
intended scope of the project.
• A cost sharing agreement is place between the city and the MTO -- the MTO will cover
86%, the City 14%.
• This report supports the delivery of core services.
BACKGROUND:
The reconstruction of Becker, Anne and Fife Streets is identified as a priority infrastructure
replacement project necessary for utility relocations to support the MTO's Frederick Street
Bridge replacement project and the future Highway 7 project. Engineering Services has
retained GHD Ltd., an engineering consulting firm to provide professional services for
contract administration, construction inspection and resident/business services for the
reconstruction of Ann/Becker/Fife Streets.
Work this project was publicly tendered by the city in March of 2024 and awarded in June
of 2024 at a cost of $575,404.34 including tax. Construction started in October of 2024 and
will be complete in the spring of 2026.
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REPORT:
The project has required GHD to provide services above the anticipated scope of work
included in the original terms of reference. Additional effort includes an increased reporting
on contractor scope change requests and costs, production of an extensive tracking
documentation for scope change requests and completion, coordination of reviews and
recommendations to MTO for approval in addition to the City, independent estimates of
additional work values, and management of submissions to the MTO Liaison for approval
in principle—all of which were not anticipated and significantly increased the Contract
Administration workload. These added requirements, necessitated to comply with the MTO-
City cost sharing agreement, combined with coordination among stakeholders like the
Region of Waterloo, telecommunication companies, business owners, and developers, all
contributed to considerable extra effort beyond the original scope.
The cost of this change request; to provide additional support through to anticipated
construction completion is $496,400.34, (not including HST) which reflects rate escalations
provided and approved through the RFQ submission and award.
STRATEGIC PLAN ALIGNMENT:
This report supports the delivery of core services.
FINANCIAL IMPLICATIONS:
The City's share of costs for the additional work to be approved under this purchase order
extension is approximately $70,000. There was an anticipated surplus of just over $900,000
from the construction phase of this project, so there are sufficient funds available to cover
the City's share of the additional costs.
COMMUNITY ENGAGEMENT:
INFORM – This report has been posted to the City's website with the agenda in advance of
the council / committee meeting.
PREVIOUS REPORTS/AUTHORITIES:
There are no previous reports/authorities related to this mater.
APPROVED BY: Justin Readman, General Manager, Development Services
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