Contract awarded for Highway 427 expansion project

By ReNew Canada 01:38PM March 14, 2017



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Infrastructure Ontario and the Ontario Ministry of Transportation have announced that LINK 427 has signed a fixed-priced contract to design, build, finance, and maintain the Highway 427 expansion project.

The contract value of the Highway 427 expansion project is approximately $616M, which reflects payments to be made during construction, the substantial completion payment and the monthly service payments before inflation adjustments. Ongoing maintenance and repairs will ensure Highway 427 is kept in good condition over the contract term.

LINK 427 will focus on design work, and construction is expected to follow in 2017 with completion occurring in 2021. The Highway 427 expansion project includes:

  • A new 6.6 kilometre extension from Highway 7 to Major Mackenzie Drive with
    • Eight lanes from Highway 7 to Rutherford Road
    • Six lanes from Rutherford Road to Major Mackenzie Drive, and
    • Three interchanges: Langstaff Road, Rutherford Road and Major Mackenzie Drive
    • New median High Occupancy Toll (HOT) lanes
  • A 4 kilometre road widening from Finch Avenue to Highway 7
    • From six to eight lanes, Finch Avenue to south of Steeles Avenue
    • From four to eight lanes, from south of Steeles Avenue to Highway 7
    • New median High Occupancy Toll (HOT) lanes

Once construction is complete, LINK 427 will receive a substantial completion payment, followed by a series of monthly payments from the Province over a 30-year period. The 30-year period commences when construction is complete. These monthly payments cover routine maintenance, construction, lifecycle repair and renewal of the highway as well as project financing.

LINK 427’s team includes:

  • Developer: ACS Infrastructure Canada Inc. and Brennan Infrastructures Inc. (a member of the Miller Group of Companies)
  • Construction: Dragados Canada Inc., Brennan Infrastructures Inc. and Bot Infrastructure Ltd.
  • Design: MMM Group Ltd. and Thurber Engineering Ltd.
  • Maintenance: ACS Infrastructure Canada Inc. and Brennan Infrastructures Inc.

LINK 427 estimates the majority of the labour will come from the Greater Toronto Area. There will be 250 workers on site at the peak of construction.

The Highway 427 expansion project underwent an open, fair and competitive procurement process overseen by a third party fairness advisor. LINK 427 submitted the proposal which delivers the best value for Ontario taxpayers.

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