Mahsi, Mr. Speaker, Members of the Legislative Assembly. This afternoon I would like to announce the award of a contract that begins the reconstruction of Highway 3 between Rae-Edzo and Yellowknife.
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The contract was awarded on Friday, November 27th, to a project team of Nishi-Khon/SNC-Lavalin, Pelly Construction Ltd. and Arny's Construction Ltd. The contract is worth $8.725 million. It will see the reconstruction and paving of 12.5 kilometres of Highway 3 between Frank Channel and the Stagg River.
I am particularly excited about this contract because it is the first design/build contract the Department of Transportation has awarded. Under this approach, the competing teams submit their bids for both the project design and its physical completion. The design/build approach encourages innovation by giving the contractors much greater latitude in preparing competing proposals. The process draws on the ingenuity of the successful contracting team to develop the most cost-effective design around the most efficient technical means of completing it. The public should be the big beneficiary from this contracting approach. I expect the department will be using this approach more often in the future.
The other exciting aspect of this award was the training and employment requirements contained in the tender specification. The successful bid had to include a commitment and a plan to hire 90 percent of the work force in the north and 50 percent from the community of Rae-Edzo. These are the most demanding employment criteria the department has ever required. The contracting team has committed to meeting the requirements with the cooperation of Aurora College and the NWT Construction Association in the training component. The employment benefits from this contract will stay in the north and give a large boost in employment opportunities for workers in Rae-Edzo.
Mr. Speaker, I am very pleased with the award of this contract to Nishi-Khon/SNC Lavalin, Pelly Construction and Arny's Construction group. The last leg of the Highway 3 reconstruction is underway. The Department of Transportation has successfully applied an innovative contracting approach and we have set a new benchmark in achieving local employment benefits. In every way, we are getting the best results from our northern contracting dollars. Mahsi, Mr. Speaker.
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