www.lexpert.ca 15
Like a regular P3, the progressive design-
build process begins with a pre-qualification
stage and then a request-for-proposal phase,
with the bidder-consultation process, says
Dunsky. But, unlike a traditional P3, the
progressive design-build includes an addi-
tional layer. e public authority hires the
contractor, and they spend 18 to 24 months
developing the design, rather than the
public authority completing the design on
its own and assigning a fixed price.
He says the contractor submits the final
proposal at the end of that 18-to-24-month
period. e public authority can then take
it or leave it, "and at that point, it becomes
a fixed-price bid." e parties sign the
project agreement, aer which the project
progresses as a regular P3.
"e big difference is that the P3 propo-
nent has actually done the design."
"An alliance contract takes this collabo-
rative model further," says Dunsky. In the
alliance model, the parties collaborate on
the design and the construction phase, and
there is no fixed price. e other unique
feature of the alliance model is that parties
can waive their right to sue each other.
"When we have a dispute, we're going to
settle the dispute through negotiations. at
takes a big hammer out of the hands of both
parties, but, in particular, the authority."
e alliance model originated in the UK
in the early 90s, used for British Petroleum's
North Sea gas and oil development proj-
ects, according to an article Dunsky wrote
with Bianca Arrelle-Petit for the Chamber
of Commerce of Metropolitan Montreal.
e model was later adopted in Australia
for the Wandoo project, an underwater
drilling undertaking, and has since been
used frequently in the Australian market,
said the article.
While there have only been a few alliance
projects in Canada, there have been many
progressive design builds, "including some
of the biggest projects in the country now,"
says Dunsky.
ere has been significant spending on
infrastructure in the last few years in BC
and Alberta, says Charlene Hiller, a partner
at Bennett Jones LLP in Vancouver. But in
BC, a worker and skills deficit is bringing
about one-bidder procurements and "a lot
of procurement alternatives," she says.
SOARING COMMODITY PRICES
FROM WAR IN UKRAINE
• Energy: 50%
• Metals and minerals: 15.8%
• Base metals: 22.2%
• Brent crude oil: 42%
• European natural gas: 111%
• US natural gas: 35%
• Aluminum: 37.5%
Source: World Bank
