MacDonald Block

Infrastructure Ontario (IO) and the Ministry of Government and Consumer Services (MGCS) have awarded a fixed-price contract to Fengate PCL Progress Partners (FP3) for the Macdonald Block Reconstruction Project and financial close was achieved on August 9, 2019.

The FP3 team includes:

  • Developers: Fengate Asset Management and PCL Investments Canada Inc.
  • Design-Builder: PCL Constructors Canada Inc.
  • Architect: WZMH Architects
  • Facilities Management: Johnson Controls Canada
  • Financial Advisor: National Bank Financial

The Macdonald Block complex, which consists of four towers and a podium near Queen’s Park in Toronto, is a critical hub of government operations that has never undergone a major renovation since it was completed in 1971.

The reconstruction project is being delivered using a public private partnership (P3) delivery model and the contract is valued at $1.536 billion, which reflects the payments made during reconstruction, the substantial completion payment, and the monthly service payments during the 30-year maintenance period (adjusted for inflation).

With the award of the contract, design work and construction activities will start immediately. Construction is expected to be substantially complete in the spring of 2024 with staged occupancy beginning soon after that.

The reconstruction project will update all core building systems which have reached the end of their useful life and must be replaced. Extensive remediation work will also be undertaken to remove designated substances from the complex. Care will be taken to preserve the integrity of its many heritage features. The reconstructed complex will meet current building, health, safety and accessibility standards, accommodate significantly more employees, and reduce the need for approximately 586,000 square feet of expensive third-party leased office space.

“We are honoured to be selected as the consortium to deliver this much-needed infrastructure reconstruction and renewal for Macdonald Block, which will result in safe, efficient and accessible operations for government employees and the public visiting the facility,” said George Theodoropoulos, Managing Partner, Fengate. “We look forward to a long and productive partnership with Infrastructure Ontario and the Ministry of Government and Consumer Services to build, operate and maintain this important heritage government complex for the province and its citizens.”

IO and MGCS selected FP3 after extensive evaluations following an open, fair and competitive procurement process that began in August 2017. The procurement process was overseen by a third-party fairness monitor.

For additional details, please click here for the official announcement.