Darwinkgo
Active Member
I'm going to have to disagree on this sentiment. First of all with a single contractor if there are cost overruns the government has greater obligation to pay more because the cost of getting another company up to speed is too great. Secondly there are many good constructors that constantly under bid the big players on smaller value contracts that simply can't afford to bid on a $2B contract. Thirdly, why is an Engineer that works for the TTC a bureaucrat, but an Engineer that works for Aecon something "better"?
Last point first: because you don't have to keep the engineer as a city employee once the project is done if they are hired by someone else.
As for cost certainty, many small risks is not less risky than one large equally risky risk. They are equal. The cost problem I talked about was not the OMG we hit an underground river, costs go up! type of risk which is pretty hard to avoid even with iron clad contracts, it is that when your contracts are staggered over years, later contracts seem to become inherrently more expensive due to construction inflation and the like. With 1 big contract you can get rid of that risk - a company like SNC Lavalin or Bilfinger Berger or Ferrovial isn't going to throw its arms up in the air and declare it will break a contract in the middle of a project.
Last point is, if these secondary companies are so good, and cost competitive they will bid on sub contracts or join a consortium. Construction isn't a welfare program - it is a business.
I am not argueing for single projects for small, uncomplicated, or short term projects - but the TTC has shown they didn't do well on St Clair, and one of their funding agencies Metrolinx is taking future projects out of their hands to prevent errors from happening again. It does not inspire confidence that they can execute this project well.