REQUEST FOR PROPOSAL: Construction Management at Risk Services. Addendum 3. Hamilton International Air Cargo Logistics Facility

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1 REQUEST FOR PROPOSAL: Construction Management at Risk Services Hamilton International Air Cargo Logistics Facility CLIENT: TradePort International Corporation, Operators of John C. Munro Hamilton International Airport (YHM)

2 Contents Changes to Hamilton International Air Cargo Logistics Facility CM Component D: Agreement Changes to Hamilton International Air Cargo Logistics Facility CM Component C. 2 Changes to Hamilton International Air Cargo Logistics Facility CM Component D: Schedule F 3

3 Changes to Hamilton International Air Cargo Logistics Facility CM Component D (Agreement) 1. Replace ARTICLE A-4 CONTRACT PRICE with the following text: 4.1 In consideration of the performance of the Work and all of the Contractor s obligations and achievement of Total Performance of the Work in strict accordance with the Contract Documents, the Client shall pay to the Contractor in lawful money of Canada, a lump sum price (the "Contract Price") equal to the aggregate of the following amounts, subject to adjustments as may be required in accordance with the provisions of the Contract Documents. The Contract Price includes all applicable taxes except HST. (a) Construction Management Fee A Construction Management Fee equal to the aggregate of the following: (i) A Construction Management Fee in the amount of $ for the provision of staff and items denoted with a checkmark ( ) in the column Included in Construction Management Fee in Schedule F Work & Scope Overview, Project and Services Description Construction Management Fee & General Requirements Fee Checklist. (ii) A Fee and Profit is included in the above amount to cover the Contractor s fee and profit and the items denoted with a checkmark ( ) in the column Included in Construction Management Fee in Schedule F Work & Scope Overview, Project and Services Description Construction Management Fee & General Requirements Fee Checklist. (b) General Requirements Fee A General Requirements Fee in the amount of $ to cover the items denoted with a checkmark ( )in the column Included in General Requirements Fee in Schedule F Work & Scope Overview, Project and Services Description Construction Management Fee & General Requirements Fee Checklist. Further details and breakdown of the General Requirements Fee is provided in Schedule A Price Breakdown. (c) Tendered Trades Contracts and Purchased Items Costs The total value of all tendered trade contracts and purchased items, as approved by the Client and required to complete the Work (the Total Value of Trades Contracts ). The Client will issue a Change Order for each trade contract and purchased item that is approved by the Client and the approved trade contractors and purchased item suppliers will become Subcontractors and Suppliers to the Contractor. The Contractor 1

4 (d) will provide competitive sub-trade pricing for 100% of the project. The work will be tendered to a minimum of three bidders, the bids evaluated and a recommendation made to the Client for the award of a sub-contract. At the end of this process, the Client will enter into a lump sum contract with the Contractor. The Contractor s overhead, fee and profit on tendered trade contracts and purchased items is included in the Construction Management Fee and the Contractor will not be entitled to any additional costs or mark up for overhead, fee or profit on tendered trade contracts and purchased items (including any changes pursuant to GC44.0). Accordingly, GC 44.3(e)(i)(C), GC 44.3(e)(i)(D), GC44.3(e)(ii)(E), GC44.6(a)(ii), GC44.6(a)(iii) and GC44.6(b)(iv) are deleted. The Union of Brotherhood of Carpenters and Joiners Union Local 18 has bargaining rights with the City of Hamilton. In compliance with terms of the infrastructure funding contribution agreement for the air cargo logistics facility, YHM shall require all construction contracts and all work involving any of the five trades of Carpentry, Acoustic and Drywall, Resilient Flooring, Caulking, and Pile Driving to be carried out by a contractor signatory to the Union. Savings Incentive Fee The Savings Incentive Fee is a one-time lump-sum amount equal to the Construction management Services Fee Fixed Percentage quoted by the Contractor in its proposal ( %) multiplied by the aggregate of the amounts set forth in ARTICLE A-4 CONTRACT PRICE 4.1(a), 4.1 (b) and 4.1 (c), subject to adjustments as may be required in accordance with the provisions of the Contract Documents. The Contract Price includes all applicable taxes except HST. For avoidance of doubt, prior to Substantial Performance Date, the Savings Incentive Fee is zero ($0). 4.2 The Contractor and the Client s design Consultant will each independently prepare cost estimates for the Work based on the design development drawings. The two estimates will be compared and reconciled. Once accepted this will become the Approved Working Budget. The Contractor shall have a duty to ensure that the Work is delivered within the Approved Working Budget. 4.3 The Contractor and the Client agree to finalize the Total Value of Trades Contracts and establish a lump sum Contract Price no later than 2. Replace ARTICLE A-5 - PAYMENT with the following text: 5.1 The Client shall make payments of the Contract Price in accordance with the Contract Documents and any applicable legislation and statutory regulations respecting holdback percentages, but in any event, subject to a holdback equal to not less than 10% of each payment on account of the Contract Price. 2

5 5.2 The Client shall make payment of the Incentive Fee following Substantial Performance date in accordance with the Contract Documents. Holdback percentages shall not apply to this payment. 3

6 Changes to Hamilton International Air Cargo Logistics Facility CM Component C Replace Form J with the following: FORM J: PRICE BREAKDOWN PROVIDE THE FOLLOWING SUMMARY OF COSTS IN THE FOLLOWING FORMAT DO NOT MODIFY THIS FORMAT (USE 8.5 x 11 PAPER) Part 1: Proponent must estimate the Construction budget (direct cost) of the Project pursuant to the PDR provided by the Client and calculate the Construction Management Fee CONSTRUCTION MANAGEMENT FEE The Construction estimate submitted by the Proponent pursuant to the PDR provided by the Client is: Column 1 Pre - Construction Management Services Fee: Fixed percentage quoted by Column 2 Construction Management Services Fee Fixed percentage quoted by the Proponent Column 3 Post - Construction Management Services Fee Fixed percentage quoted by the Proponent $ Multiplied by % Multiplied by % Multiplied by % LINE A TOTAL CONSTRUCTION MANAGEMENT FEE (Columns 1+2+3) = $ = $ = $ = $ 4

7 Part 2: Proponent must quote the General Requirements Fee that are intended to cover the items denoted with a checkmark in the column Included in General Requirements Fee in Schedule F GENERAL REQUIREMENTS FEE Costs and charges quoted by the Proponent for all GENERAL REQUIREMENTS based on Construction Management and conversion to Stipulated Price Construction Contract Proponents are instructed to provide a detailed itemization. ATTACH ADDITIONAL PAGES AS REQUIRED. It is intended that unless specific exceptions are stipulated, all costs and charges for all items and matters within these descriptions will be deemed to be covered in Proponent s quotation herein, for the entire duration of the Project. # Division Column (1) Pre - Construction General Requirements costs and charges Column (2) Construction General Requirements costs and charges Column (3) Post - Construction General Requirements costs and charges Colum (4) Inclusions LINE B 1 Professional Consultants Engineering, Surveying, Geotechnical, Legal 2 Head Office Overheads Overhead 3 Site Supervision Included in Construction Management Fee 4 Site Labour Included in Construction Management Fee 5 Site Office Costs Communications, First Aid, Courier, Toilets, Computers Software & Licenses 6 Site Costs Security, Safety Plan, Safety Rails, Garbage Bins, Hoarding, Hoisting, Snow Removal, Traffic Control, Photographs 7 Utilities Connection & Operation Costs for Hydro, Water, Heat 8 Cleanup Costs Garbage Costs, Tip Fees, Final Cleanup, Ongoing Cleanup, Dust Screens 9 Business Costs Mockups, Signage, City Rental, Delivery 10 Staff Cost Parking, Vehicles, Safety Bonus, Incentives 11 Inspections & Permits City or other Permit or Inspection Costs 12 Small Tools Rental, Purchase, Gas 13 Insurance All Risk, Course of Construction, Liability 14 Bonds General & Subtrade 15 As-Builts Drawings, Manuals, Certifications 16 Other Specify Totals: $ $ $ TOTAL GENERAL REQUIREMENTS (COLUMNS 1+2+3) = $ Total Line A + Line B = $ 5

8 Changes to Hamilton International Air Cargo Logistics Facility CM Component D (Agreement) Modify the Table in 3. Construction Management Fee & General Requirements Fee Checklist, so that item 9. Insurance reads: Included in General Requirements Fee 6

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