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Hôpital Montfort Expansion And Redevelopment

Archived Backgrounder

Hôpital Montfort Expansion And Redevelopment

Office of the Premier

Hôpital Montfort

The Daughters of Wisdom and Franco-Ontarian leaders established Hôpital Montfort more than 50 years ago. Today, the hospital offers a full range of in-patient and community-based health care. Montfort is officially designated a bilingual hospital and also serves as a Francophone teaching hospital.


The Project

The hospital's redevelopment will add two new wings and renovate existing facilities -- including intensive care, maternal newborn, mental health, ambulatory care and emergency services. The redeveloped facility will increase the size of the hospital to more than 700,000 square feet.

Construction is scheduled for completion in 2009.

A facility for treating members of the Canadian Forces, funded by the federal government, is also part of the expansion.

Project Procurement And The Construction Contract

Hôpital Montfort is the first project to begin construction under the government's Alternative Financing and Procurement (AFP) program, where risks for cost overruns and delays during construction are transferred to the private sector.

EllisDon Corporation, which provided the best-value bid, was selected from a short list of qualified companies to build the project.

The company has undertaken to complete the work by a certain date, for a guaranteed maximum price. The province will pay for the project only at completion, when all the contract requirements are met.

Construction financing will be provided by a syndicate led by the corporate finance division of BMO Bank of Montreal, also including Caisse Centrale Desjardins and RBC Capital Markets, the corporate and investment banking arm of Royal Bank of Canada.

Montfort's board retains full title to the building throughout, ensuring the hospital is publicly owned, controlled and accountable.

The Montfort construction project contract is available at www.infrastructureontario.ca (click Projects/Montfort Hospital).

Providing Value For Taxpayers

The guaranteed maximum price contract signed between Montfort and EllisDon transfers many risks to the contractor versus a traditional procurement approach. Some of those transferred risks include:

  • Transfer of risks associated with design coordination and errors to the contractor
  • Schedule delays to be managed by the contractor and contractor is required to compensate Hôpital Montfort is the project is not ready on time
  • Increases in labour and material costs to be covered by the contractor.

A detailed Value for Money Report will be released publicly by Infrastructure Ontario in the coming months. The report will detail costs savings under this model versus a traditional procurement approach.

Alternative Financing And Procurement And Infrastructure Ontario

AFP transactions will be implemented according to the principles of the Building a Better Tomorrow Framework, which outlines a made-in-Ontario approach for planning, financing and procuring public infrastructure. The Framework ensures public ownership, transparency, accountability and protection of the public interest.

Infrastructure Ontario, an arms-length crown corporation, manages projects assigned to it under the government's AFP program. Using best practices recognized worldwide, the corporation uses private-sector expertise to expand and renew public assets, and deliver infrastructure projects on time and on budget.

For more information, visit: www.infrastructureontario.ca.

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