P3 Model Saves Government More than $30 Million on Construction Costs of New Schools

Released on August 25, 2015

By using a public-private partnership (P3) model to build 18 new elementary schools on nine joint-use sites, the provincial government is saving taxpayers $34.5 million on the construction costs of the project, the largest of its kind in Saskatchewan’s history.

The new schools will include 810 new child care spaces as well as new community space. In September 2017, thousands of Saskatchewan elementary students will be learning in these new schools being constructed on nine joint-use sites in Martensville, Regina, Saskatoon and Warman. These publicly owned schools are being built to accommodate the unprecedented growth taking place in these communities.

“These schools will stay in better condition, be finished faster, and cost millions less than if the government did this project without a public-private partnership,” SaskBuilds Minister Gordon Wyant said.

“I know that students, parents and teachers will benefit from these schools for many years to come,” Education Minister Don Morgan said. “Not only does this investment provide for 18 new state-of-the-art schools, it also ensures that these facilities are maintained in a like-new condition for the next 30 years.”

In total, the government will invest $635 million in today’s dollars over the life of the contract, which includes:

Construction-related costs;
Cost of maintenance over 30 years; and
Cost of rehabilitation to keep the schools in like-new condition.

Using a traditional approach to build and maintain the schools would have cost $735 million in today’s dollars. By using a P3 the government will save $100 million including construction, financing, and long-term maintenance to ensure the schools will be maintained in like-new condition over three decades. That is a savings of 13 per cent as determined by SaskBuilds’ independent financial experts.

Joint-Use Mutual Partnership was competitively selected to deliver the schools. The consortium that operates as one team includes: Concert Infrastructure Ltd., Bird Capital Limited Partnerships, Bird Design-Build Construction Inc., GEC Architecture, along with Wright Construction Western Inc., Kindrachuck Agrey Architecture, and Johnson Controls Canada LP, which all have offices in Saskatchewan.

“Concert is excited to be working with the government of Saskatchewan to deliver these critically-needed schools to their growing communities,” Concert Infrastructure Ltd.'s Chairman and CEO David Podmore said. "Each and every one of our staff, as well as the 200,000 Canadians represented by the union and employer pension plans who own our company, are extremely proud to be bringing the largest school construction project in Saskatchewan to life. In the process we are continuing Concert's legacy as a community builder and long term partner.”

The contract’s financial details will be disclosed in a value for money assessment report that will be released along with the project documents at the earliest opportunity in keeping with Canadian best practice.

Construction on the publicly owned and operated schools will be complete before September 2017.

SaskBuilds led an open, transparent, and fair procurement process that was monitored by an external Fairness Advisor. For copies of the Fairness Advisor’s reports and more information on SaskBuilds, visit www.saskbuilds.ca.

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For more information, contact:

Sarah Harrison
SaskBuilds
Regina
Phone: 306-798-1213
Email: sarah.harrison@gov.sk.ca

P3 Model Saves Government More than $30 Million on Construction Costs of New Schools

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