WORK on the construction of a new Hamilton Police Station and Magistrates' Court officially got under way yesterday ¿ nearly nine years after Government first pledged to build a new facility.

The new five-storey facility will be located on the corner of Victoria and Court Streets and will be built at an estimated cost of around $75 million. It is expected to be operational by the summer of 2010.

At a press conference yesterday, Works & Engineering Minister Dennis Lister confirmed that local firm Landmark Construction had won the contract for the multi-million-dollar project after teaming up with Canadian company Lisgar Construction.

"I have invited you here today to advise you that the Government has entered into a contractual arrangement with Landmark Lisgar Construction Company Ltd. for the Construction Management of the new Hamilton Police Station/Magistrates' Court Building," Mr. Lister said.

"You will be aware that the Government has already advised that this new building will be named in honour of one or our greatest heroes, Dame Lois Browne Evans.

"The award of the contract to Landmark Lisgar is the result of a competitive bidding process. A public call for expressions of interest was issued in January of this year. Ten firms expressed an interest in bidding for this project in April and through a pre-qualification process five were invited in June to submit bids. The tender process was extended to close in September and three responses were received. An analysis of the submissions led to the decision to award the contract to Landmark Lisgar, whose principals have joined with me today.

"The project scope includes the construction of the new Magistrates' Courts and Hamilton Police Station building on the southwest corner of Victoria and Court Streets, and an adjacent office building on the northwest corner of Court and Church Streets. The Courts/Hamilton Police Station project is designed to improve operational efficiency for the Magistrates' Courts and the Bermuda Police Service, provide a better working environment for staff of these facilities, and provide better services to the general public. The office building will provide much needed accommodation for Government Departments.

"The Magistrates Courts' / Hamilton Police Station building has an overall area of 106,000 square feet on five floors including one underground level. In addition the project also comprises a generic office building of 21,000 square feet on four floors, including one underground level.

"The Government has chosen to use a Construction Management approach to this project. Landmark Lisgar will be responsible for the construction works and management of the construction schedule, the sub-contractors, the construction site and the final construction product. Landmark Lisgar will also be responsible for engaging all of the sub-contractors required for the project and we are confident that through this process Government's efforts to ensure that contractors who previously had been unable to obtain Government contracts will now be able to do so.

"As a result, the benefits of this project will be shared by more Bermudians than has previously been the case.

"One critical feature of this project is that the Construction Manger must provide a Guaranteed Maximum Sum for the entire project. Normally, a Construction Manager would obtain prices for the various components of the job and the final cost would only be known at the end. Under the Guaranteed Maximum Sum approach, Landmark Lisgar has provided to Government a Guaranteed Maximum price in advance.

"It will then be for Landmark Lisgar to ensure that the sum of the components total less than the Guaranteed Maximum Price.

"Another special arrangement for this project is an incentive for Landmark Lisgar to deliver the project for less than the Guaranteed Maximum Sum. Should they be successful in doing so, they will receive as a bonus a portion of the amount saved.

"This approach ensures us that the Government will achieve the best product for the best possible price, a clear demonstration of this Government's sound stewardship of the public purse.

"We anticipate that the final price will be approximately $75 million. This sum includes a management fee for the services provided by the Construction Management Company plus the actual cost to build.

"We expect that the construction will be completed in approximately 30 months.

"This project has long been awaited by its future occupiers, the Bermuda Police Service and the Magistrates' Courts, representatives of each have joined me here today.

"I am certain that they are now thrilled with the news that this project has now commenced. The Government is pleased that this major development, deferred for many years, will now become a reality."