The Generals - Fall/Winter 2016 - 39

Conclusion Avoiding Design Risk and Encouraging Innovation The design phase is a critical stage in the life of a public infrastructure project. By making bidders responsible for both design and construction, when design issues are discovered during construction, the design-build team is prevented from claiming additional costs from the government. Selecting Good Partners It is critical that the public sector select highly competent private sector partners who can be counted on to approach projects in the spirit of partnership that is required to work through the inevitable issues that arise on large complex projects. Fifteen years ago, the first P3 projects demonstrated both the strengths and the drawbacks of 'classic' P3s. While they, in most instances, minimized cost overruns from established budgets for government, they came with a significant private sector financing cost. Since that time, the approach used in Ontario through Infrastructure Ontario to deliver large public infrastructure projects has continued to evolve, incorporating the fundamental principles of modern public infrastructure project delivery outlined above. At the end of the day, taxpayers pay for and own the hospitals, courts, highways, transit systems and other public infrastructure that deliver services for the people of Ontario. ■ This article is a condensed version of a piece written by Ehren Cory, Infrastructure Ontario's Divisional President of Project Delivery, in consultation with the Office of the Auditor General of Ontario. The full article can be found on Renew Canada's site, at: http://renewcanada.net/2016/ modern-public-infrastructure-project-delivery/ Aon Risk Solutions Alignment of Interests, Negotiating Leverage and Counterparty "skin in the game" By tying payments to completion of the project or significant milestones, the contractor's financial interests are more closely aligned with those of the government and they are focused on advancing the project. Another way to align interests and focus the contractor on advancing the project is to impose payment deductions for delay. Withholding Payments in Proportion to Risk When governments withhold payments it is a risk mitigation technique. The public sector should always be mindful of the costs of this approach, and seek to minimize third-party financing costs by withholding no more of the payments than is required. Just like insurance, the object is to pay no more than is required given the risks. Taking Externalities into Account Many large projects have the potential to cause significant community disruption while they are being built. This is especially true in the case of large public transit and transportation projects in developed urban environments. Care should be taken to ensure that bid processes evaluate each bidder's approach to minimizing that disruption. Constructions Services Group Aon Construction Services Group 25% of the construction premium in Canada (#1 rank). 20% of the bonding premium in Canada (#1 rank). 85% of PPP business in Canada (#1 rank). Use our leverage and experience to improve your insurance, bonding and risk management programs while staying with your current insurance company/ bonding company. Insurance Surety Dan DeFinney 416.868.5726 dan.definney@aon.ca Steve Hogan 416 868 5749 steve.hogan@aon.ca Taking a Whole-Life Approach to Projects By taking maintenance into account when planning a project, whole life costs can potentially be optimized. Risk. Reinsurance. Human Resources. 733617_AON.indd 1 Fall/Winter 2016 39 2/7/15 2:51 AM http://www.renewcanada.net/2016/ http://www.aon.ca

Table of Contents for the Digital Edition of The Generals - Fall/Winter 2016

Chairman’s Message
President’s Message
Incoming Chair’s Message
Government Relations Report
Events, Upcoming Events & Member Milestones
Index to Advertisers
Gateman Milloy Building Excellence
The Metron Case
League of Champions/Safety Awards
Accreditation/COR™
New Chairman: A Profile of Frank Perricone
Modern Infrastructure
Golf Tournament
78th Annual AGM and Conference
OGCA Builders Awards
10th Annual Construction Symposium- Building Canada for 150 Years
The Generals - Fall/Winter 2016 - cover1
The Generals - Fall/Winter 2016 - cover2
The Generals - Fall/Winter 2016 - 3
The Generals - Fall/Winter 2016 - 4
The Generals - Fall/Winter 2016 - 5
The Generals - Fall/Winter 2016 - Chairman’s Message
The Generals - Fall/Winter 2016 - 7
The Generals - Fall/Winter 2016 - 8
The Generals - Fall/Winter 2016 - President’s Message
The Generals - Fall/Winter 2016 - 10
The Generals - Fall/Winter 2016 - Incoming Chair’s Message
The Generals - Fall/Winter 2016 - 12
The Generals - Fall/Winter 2016 - Government Relations Report
The Generals - Fall/Winter 2016 - 14
The Generals - Fall/Winter 2016 - Events, Upcoming Events & Member Milestones
The Generals - Fall/Winter 2016 - Gateman Milloy Building Excellence
The Generals - Fall/Winter 2016 - 17
The Generals - Fall/Winter 2016 - 18
The Generals - Fall/Winter 2016 - 19
The Generals - Fall/Winter 2016 - 20
The Generals - Fall/Winter 2016 - 21
The Generals - Fall/Winter 2016 - The Metron Case
The Generals - Fall/Winter 2016 - 23
The Generals - Fall/Winter 2016 - 24
The Generals - Fall/Winter 2016 - 25
The Generals - Fall/Winter 2016 - League of Champions/Safety Awards
The Generals - Fall/Winter 2016 - 27
The Generals - Fall/Winter 2016 - 28
The Generals - Fall/Winter 2016 - Accreditation/COR™
The Generals - Fall/Winter 2016 - 30
The Generals - Fall/Winter 2016 - 31
The Generals - Fall/Winter 2016 - New Chairman: A Profile of Frank Perricone
The Generals - Fall/Winter 2016 - 33
The Generals - Fall/Winter 2016 - 34
The Generals - Fall/Winter 2016 - 35
The Generals - Fall/Winter 2016 - 36
The Generals - Fall/Winter 2016 - 37
The Generals - Fall/Winter 2016 - Modern Infrastructure
The Generals - Fall/Winter 2016 - 39
The Generals - Fall/Winter 2016 - Golf Tournament
The Generals - Fall/Winter 2016 - 78th Annual AGM and Conference
The Generals - Fall/Winter 2016 - 10th Annual Construction Symposium- Building Canada for 150 Years
The Generals - Fall/Winter 2016 - 43
The Generals - Fall/Winter 2016 - 44
The Generals - Fall/Winter 2016 - 45
The Generals - Fall/Winter 2016 - 46
The Generals - Fall/Winter 2016 - 47
The Generals - Fall/Winter 2016 - 48
The Generals - Fall/Winter 2016 - Index to Advertisers
The Generals - Fall/Winter 2016 - 50
The Generals - Fall/Winter 2016 - cover3
The Generals - Fall/Winter 2016 - cover4
The Generals - Fall/Winter 2016 - outserts1
The Generals - Fall/Winter 2016 - outserts2
The Generals - Fall/Winter 2016 - outserts3
The Generals - Fall/Winter 2016 - outserts4
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