Contract and Payment 

Plenary Infrastructure ERMF has signed a fixed-price contract with Infrastructure Ontario (IO) and Metrolinx to design, build, finance and maintain the East Rail Maintenance Facility (ERMF) project in Whitby. Construction will begin in spring 2015 with substantial completion anticipated for the end of 2017.

The contract value for the ERMF project is $859.2 million, which reflects the substantial completion payment and the monthly service payments before inflation adjustments. The contract cost covers the design and construction of the facility, project financing, as well as a 30-year term for building maintenance, lifecycle repair and renewal.

The Province's Alternative Financing and Procurement (AFP) model builds in a fixed-price contract and transfers significant project risks to the consortium, including any cost increases or delays due to: design errors and omissions, project management and sub-contractor co-ordination, construction material prices and labour costs, schedule and project completion, and other related constructions risks. In the past, many of these risks were the responsibility of the public sector. The end result is a publicly owned infrastructure project that is built to a high standard and maintained properly to ensure longevity of the asset.

Plenary Infrastructure ERMF participated in an open, fair and competitive procurement process that was overseen by an independent, third-party fairness advisor. As part of Infrastructure Ontario's commitment to transparency, the contract will be posted at www.infrastructureontario.ca in the coming weeks. 

The Consortium 

Plenary Infrastructure ERMF is a consortium of some of Canada's most well-respected construction companies with proven experience in delivering transit and transportation projects of this scale. Prime team members include:

  • Developer: Plenary Group (Canada) Ltd., Kiewit Canada Development Corp.,  Bird Capital Limited Partnership
  • Construction: Bird Design-Build Construction Inc., Peter Kiewit Infrastructure Co.
  • Design: Stantec Consulting, Arup Canada Inc.
  • Facilities Management: Honeywell Limited, Toronto Terminals Railway
  • Financing provided by: TD Bank, Bank of Montreal and TD Securities  

Jobs and Economy 

Large projects, such as the ERMF, provide significant economic opportunity for local workers, suppliers and contractors. Plenary will partner with local labour to harness the local knowledge, experience and capacity of skilled workers and apprentices.  

Plenary Infrastructure ERMF anticipates that at the peak of construction, approximately 1,000 workers will be on-site, the majority of which will come from the Greater Toronto and Hamilton Area.