Alternative Approach Brings Collaborative Solutions to Construction

Just because we’ve always done things one way doesn’t mean we shouldn’t consider alternatives.

That was the message from Glen Arthur, alternative delivery manager, Western Canada, for Kiewit Infrastructure Markets & Strategies in his presentation about procurement at the Saskatchewan Heavy Construction Association (SHCA) Infrastructure Summit and Trade Show, held in Regina late in 2024. Arthur explained progressive delivery models, which are an alternative to traditional procurement.

Progressive delivery projects involve collaborative teams where the client, engineer and contractor are integrated to collectively make decisions regarding projects, rather than the contractor and project designer working in silos. Arthur says progressive models deliver solutions for projects with complex design and phasing – with long lead times for materials – that are high risk, require in-depth research, involve multiple stakeholders, have local subcontractors and are time and budget sensitive.

Progressive delivery combines a project’s design and build stages. Instead of a transitive model where progress is passed from design to construction, this approach engages all parties from Day One to create collaborative solutions for projects and clients. Primarily originating in Australia, this model has now been used around the world, delivering approximately $90 billion of work worldwide.

“One of the problems we are seeing on large projects is that they are sometimes late and over budget – this is becoming a problem,” said Arthur, who points out that using a collaborative progressive delivery model may solve these problems. “You have a more efficient team, a more efficient timeline and all parties are engaged from Day One to create collaborative solutions.

Also, because the team is all sitting around the table together, you can discuss innovation – something you can’t do when you don’t work as a team. I believe bringing more innovation to projects will be one of the biggest advantages of this model over time.”

Arthur says this model is effective when a project has six main characteristics:

• The project has risks that can’t be defined before tender
• The cost of transferring risks is prohibitive
• A collective risk-management approach will produce better outcomes
• The owner can positively influence project outcomes by staying engaged
• There is significant pressure to get started quickly
• Traditional delivery models have produced poor outcomes on past projects, even resulting in legal or mediation activities

The key, Arthur says, is early stakeholder and local contractor engagement, and client collaboration. One example of this model is the Waaban Crossing in Kingston, Ont., a project that was awarded the 2020 Infrastructure Innovation Award by the Ontario Road Builders’ Association. Arthur says the City of Kingston had only $180 million for this project and knew it needed creative solutions to stay within its budget.

“Early collaboration between the integrated project delivery parties facilitated development of a constructible solution within the city’s budget,” said Arthur. “Key was bringing the steel supplier to the table early in the process since that was going a big part of procurement.”

Owner advantages

Arthur stresses one of the biggest advantages of this model is cost overruns were reduced by 50 per cent. Other advantages for the owner included:

• Faster and less expensive procurement process
• Significantly less spending on up-front advisers
• No stipend costs
• Early cost and schedule certainty
• Reduced claims
• All parties aligned in “best for project” decisions
• Improved relationships and partnership between private and public sectors
• Overall fastest delivery from project inception to shovels in the ground
• Fewer boundaries to limit innovation

Contractor designer advantages

Advantages for the contractor and designer included:

• Alignment of interests between all project parties
• Constructability built into design
• All parties aligned in “best for project” decisions
• Direct collaboration with client
• True collaboration leading to innovative solutions
• Real-time stakeholder feedback

Canadian success story – Northwest Territories Tłı̨chǫ All-Season Road

Arthur stresses that good partnerships lead to innovation and success, and one of the best examples of a great partnership that used the progressive delivery model is Tłı̨chǫ All-Season Road, built in the Northwest Territories.

This 97-kilometre, all-season gravel Highway 3 links the remote northern community of Whatì with its neighbours in the Northwest Territories. It is the first P3 project in North America with an Indigenous government having an equity stake. The project is also notable for its unique approach to handling long-term risks related to climate change.

“This project had challenging terrain – muskeg, permafrost, extreme temperatures and it is just below the tree line,” said Arthur. “There’s sand, gravel, rock, wildlife, and you are working with traditions such as traplines and culturally important sites.”

The Government of the Northwest Territories worked in partnership with the Tłı̨chǫ Government to advance the project, which was funded jointly by the Government of Canada (25 per cent) and the Government of the Northwest Territories (75 per cent). The project involved replacing the southern section of an existing winter road so it would adapt to the impacts of climate change, provide uninterrupted access to Whatì and increase the winter road access to the communities of Gamètì and Wekweètì.

All-weather access reduces the cost of living for the region, enhances residents’ quality-of-life through increased social opportunities and will attract further interest from industry interested in exploration and development of natural resources.

The project is a 28-year, performance-based agreement to design, build, finance, operate and maintain this 97-km, all-season gravel highway, replacing a winter-only ice road. The owner of this project is the Government of Northwest Territories, and the capital ceiling was $200 million.

The model was Design-Build-Finance-Operate-Maintain (DBFOM):

• Private partner: North Star Infrastructure GP
• Delivery: Public private partnership (DBFOM)
• Location: 120 km east of Yellowknife, N.T.
• Scope: 97-km of two-lane, all-season gravel road
• Construction period: three years
• Operating period: 25 years

Construction began in fall 2019 with a target date for substantial completion of Nov. 30, 2021, but the project finished a year ahead of schedule.

Arthur says one of the biggest advantages of the project is construction and maintenance meant significant employment and training opportunities for Tłı̨chǫ residents, supporting the development of a strong northern workforce. Fifty-five per cent of the labour was local, and many workers transitioned from construction to work on the ongoing maintenance of the road.

“This progressive model exceeded all requirements and expectations that the client had of us,” Arthur said.