05-25-2017, 12:31 PM
64 days to the substantial completion deadline, will they or won't they make it? Rainy spring has not helped them.
According to the project agreement GrandLinq needs to provide the OMSF/Test Track Readiness Countdown Notice to the region and the independent certifier “not less than 60 days prior to the Anticipated OMSF/Test Track Readiness Date.” Given that the Scheduled Substantial Completion Date is July 28, 2017 and that GrandLinq needs to complete the Final Commissioning Program before then wouldn’t we know by 29-May-2017 if they are going to meet the original deadline?
In fact, reading further now, the region should already know if they are going to be on time. The project agreement says, “The Countdown Notice shall be delivered not less than 180 days prior to the Anticipated Substantial Completion Date. If Project Co fails to deliver the Countdown Notice not less than 180 days prior to the Scheduled Substantial Completion Date, the Anticipated Substantial Completion Date shall be deemed to be the same date as the Scheduled Substantial Completion Date.”
From my understanding, before they can obtain a substantial completion certificate they still need to do the Final Commissioning, but first they need to do the OMSF and Test Track Commissioning Program and something called Verification, Testing, Acceptance and Commissioning (VTAC). Part of the commissioning program is a, “Pre-Substantial Completion Demonstration for final acceptance which will be conducted for a period of fourteen (14) consecutive days following successful completion of testing and commissioning; verification by Project Co that there are no deficiencies to prevent safe running of the System; and verification that there are an adequate number of trained staff to operate the System. At the end of this exercise, the integrated system will be ready for achievement of Substantial Completion.”
That's a lot to do in the next 2 months!
As for when we might see LRV#1 starting its testing GrandLinq needs to give the region 30 days notice of the proposed comencement of the OMSF/Test Track Readiness Commissioning and the region and/or the indepentent certifier has 10 days to either grant or deny the OMSF/Test Track Readiness Certificate. I don’t think we’ve heard word either of those yet.
Also of interest is that the Scheduled Final Completion Date is listed December 22, 2017 which is right around the time the last LRV is currently scheduled for delivery. Vehicle Acceptance Testing will be rush a job on that one!
As for the matter of who’s paying for the construction dome at King/Victoria it seems from the project agreement that there was a provision from the outset that the region would be on the hook for anything up to $2,000,000 if permits were not issued on time.
“(d) The Region and Project Co agree that in the event Project Co is unable to obtain the requisite Project Co Permits, Licenses and Approvals necessary to permanently close the King Street and
Moore Street intersection in order to complete construction of the System in accordance with the Works Schedule and to perform the Maintenance and Rehabilitation Services and the Operations Services, then, to the extent Project Co's final design (as approved pursuant to Section 20 hereof) requires Project Co to expend additional Direct Costs as a result of the inability to obtain such Project Co Permit, License and Approval, Project Co shall, subject to and in accordance with this Section 9.4(d) and (e), and subject to and in accordance with Schedule 22 - Variation Procedure, be entitled to a Variation (the "King Street Closure Variation").
(e) The King Street Closure Variation is subject to the following terms and conditions: (i) the Region shall not be obligated to pay an amount of greater than $2,000,000 to Project Co (including applicable Taxes) in respect of Direct Costs incurred by Project Co, any Project Co Party or any other person in respect of the King Street Closure Variation (the "King Street Variation Limit"); (ii) the King Street Closure Variation shall have no impact on the Works Schedule, the Scheduled Substantial Completion Date, the Scheduled OMSF/Test Track Readiness Date, the Scheduled Public Infrastructure Component Acceptance Date or any other schedule impact on the provision of the System or the Public Infrastructure or the completion of the Design and Construction Works or the Public Infrastructure Works; (iii) to the extent that the King Street Closure Variation has an impact on the performance of the Project Operations or the Project Agreement, or result in amendments to the Project Agreement and other documents, the Region shall not incur any direct or indirect costs of any nature in relation to such King Street Closure Variation beyond the King Street Variation Limit (including, for clarity, any increase to the Monthly Service Payment and any compensation or other amounts (however described) payable to Project Co to reimburse the Lenders, or any other amounts of any nature whatsoever).”
Finally, I have seen references to a “Schedule 35 – Vehicles,” but it not even listed as “Not included in the Project Agreement” or redacted or “intentionally deleted” on the website. Where is it then?
According to the project agreement GrandLinq needs to provide the OMSF/Test Track Readiness Countdown Notice to the region and the independent certifier “not less than 60 days prior to the Anticipated OMSF/Test Track Readiness Date.” Given that the Scheduled Substantial Completion Date is July 28, 2017 and that GrandLinq needs to complete the Final Commissioning Program before then wouldn’t we know by 29-May-2017 if they are going to meet the original deadline?
In fact, reading further now, the region should already know if they are going to be on time. The project agreement says, “The Countdown Notice shall be delivered not less than 180 days prior to the Anticipated Substantial Completion Date. If Project Co fails to deliver the Countdown Notice not less than 180 days prior to the Scheduled Substantial Completion Date, the Anticipated Substantial Completion Date shall be deemed to be the same date as the Scheduled Substantial Completion Date.”
From my understanding, before they can obtain a substantial completion certificate they still need to do the Final Commissioning, but first they need to do the OMSF and Test Track Commissioning Program and something called Verification, Testing, Acceptance and Commissioning (VTAC). Part of the commissioning program is a, “Pre-Substantial Completion Demonstration for final acceptance which will be conducted for a period of fourteen (14) consecutive days following successful completion of testing and commissioning; verification by Project Co that there are no deficiencies to prevent safe running of the System; and verification that there are an adequate number of trained staff to operate the System. At the end of this exercise, the integrated system will be ready for achievement of Substantial Completion.”
That's a lot to do in the next 2 months!
As for when we might see LRV#1 starting its testing GrandLinq needs to give the region 30 days notice of the proposed comencement of the OMSF/Test Track Readiness Commissioning and the region and/or the indepentent certifier has 10 days to either grant or deny the OMSF/Test Track Readiness Certificate. I don’t think we’ve heard word either of those yet.
Also of interest is that the Scheduled Final Completion Date is listed December 22, 2017 which is right around the time the last LRV is currently scheduled for delivery. Vehicle Acceptance Testing will be rush a job on that one!
As for the matter of who’s paying for the construction dome at King/Victoria it seems from the project agreement that there was a provision from the outset that the region would be on the hook for anything up to $2,000,000 if permits were not issued on time.
“(d) The Region and Project Co agree that in the event Project Co is unable to obtain the requisite Project Co Permits, Licenses and Approvals necessary to permanently close the King Street and
Moore Street intersection in order to complete construction of the System in accordance with the Works Schedule and to perform the Maintenance and Rehabilitation Services and the Operations Services, then, to the extent Project Co's final design (as approved pursuant to Section 20 hereof) requires Project Co to expend additional Direct Costs as a result of the inability to obtain such Project Co Permit, License and Approval, Project Co shall, subject to and in accordance with this Section 9.4(d) and (e), and subject to and in accordance with Schedule 22 - Variation Procedure, be entitled to a Variation (the "King Street Closure Variation").
(e) The King Street Closure Variation is subject to the following terms and conditions: (i) the Region shall not be obligated to pay an amount of greater than $2,000,000 to Project Co (including applicable Taxes) in respect of Direct Costs incurred by Project Co, any Project Co Party or any other person in respect of the King Street Closure Variation (the "King Street Variation Limit"); (ii) the King Street Closure Variation shall have no impact on the Works Schedule, the Scheduled Substantial Completion Date, the Scheduled OMSF/Test Track Readiness Date, the Scheduled Public Infrastructure Component Acceptance Date or any other schedule impact on the provision of the System or the Public Infrastructure or the completion of the Design and Construction Works or the Public Infrastructure Works; (iii) to the extent that the King Street Closure Variation has an impact on the performance of the Project Operations or the Project Agreement, or result in amendments to the Project Agreement and other documents, the Region shall not incur any direct or indirect costs of any nature in relation to such King Street Closure Variation beyond the King Street Variation Limit (including, for clarity, any increase to the Monthly Service Payment and any compensation or other amounts (however described) payable to Project Co to reimburse the Lenders, or any other amounts of any nature whatsoever).”
Finally, I have seen references to a “Schedule 35 – Vehicles,” but it not even listed as “Not included in the Project Agreement” or redacted or “intentionally deleted” on the website. Where is it then?
Everyone move to the back of the bus and we all get home faster.