The Metropolis of Ottawa’s personal accomplice in constructing its newly re-opened north-south commuter rail line is dealing with greater than $100 million in authorized claims alleging its incapability to correctly handle the mission led to pricey delays.
AtkinsRéalis, the rebranded engineering big previously often known as SNC-Lavalin, gained the $1.6-billion contract to develop and keep the diesel Trillium Line via a newly created subsidiary known as TransitNext — regardless of failing the technical round during the bidding process.
OC Transpo started a phased opening of the road this month, greater than two years later than anticipated.
Paperwork filed in a handful of civil circumstances present a window into the pandemic-challenged constructing course of, which continued alongside the troubled opening of the east-west Confederation Line and the resulting public inquiry.
“From the start, SNC[-Lavalin] was disorganized,” alleged Pomerleau, which managed the development of transit stations and upkeep buildings, in a 2024 assertion of declare. “SNC[-Lavalin]’s design administration, poor change administration and poor contract administration stymied the mission.”
The corporate and different contractors recommend AtkinsRéalis’ missteps adopted the mission from starting to finish, from long-delayed and obscure design paperwork to assigning managers who lacked the correct expertise or expertise.
Not one of the allegations has been confirmed in court docket. AtkinsRéalis wouldn’t present an interview, however stated in an emailed assertion to CBC “it’s regular for there to be disagreements” in a mission of this measurement.
Technical issues predated mission
Ottawa selected SNC-Lavalin from amongst three bidders in 2019. Whereas it was later revealed that the analysis group rated the corporate’s proposal far beneath its rivals when it comes to technical necessities, the Montreal-based firm provided the very best worth.
Skilled evaluators warned the plans lacked element and stated resolving them could be a “lengthy and prolonged course of.” Additionally they famous issues in regards to the degree of related expertise among the many bid’s key gamers.
Town’s technical analysis group stated SNC-Lavalin’s bid was “a poor technical submission” and ought to be thrown out. So how did the corporate win the $1.6-billion contract anyway? Metropolis affairs analyst Joanne Chianello explains.
After SNC-Lavalin signed an settlement, it engaged Pomerleau to handle development for many of the new or renovated buildings. Years into the mission, it might add the remaining stations.
In an $88-million lawsuit, Pomerleau alleges the corporate’s work fell beneath trade requirements, undermining its capability to fulfil its obligations.
Pomerleau claims it labored from incomplete designs for years. In keeping with its assertion of declare, the finalized plans finally got here via in November 2021, a couple of 12 months earlier than the road was initially slated to open.
Each time the shortage of element turned an issue, the corporate would ask for readability. These “requests for data” ultimately totalled over 4,700, it alleges, with every taking a mean of 17.5 days to resolve.
“SNC merely couldn’t finalize its design, which created huge delay and materially modified the procured scope of the mission,” Pomerleau stated in its assertion of declare.
Escalation prices in dispute
Because the mission morphed in scope, Pomerleau alleges development prices ballooned from about $100-million to greater than $400 million.
The results of escalating prices had a cascading impact on smaller firms employed down the chain, a number of of which issued development liens in opposition to the properties as they await cost from AtkinsRéalis or Pomerleau — a observe widespread in these kinds of disputes.
As with different main tasks, the impact of the pandemic can’t be discounted. It slowed development and kicked off inflationary pressures, inflicting the prices of supplies and labour to rise.
It is a vexing situation for AtkinsRéalis given the character of the contract, which is designed to insulate town from monetary threat.
AtkinsRéalis has had a lot bother with these “lump sum turnkey” tasks, the place a contractor agrees to be paid a hard and fast worth no matter pricey delays, that it vowed to make the Trillium Line contract the final one it indicators.
However that does not imply recouping escalated prices is out of the query, with town stating it is negotiating a settlement with contractors constructing the following stage of its beleaguered practice system.
Town solicitor has declined to remark on whether or not these talks relate to AtkinsRéalis, together with whether or not an settlement might assist resolve the chain of fits.
On Friday, town reiterated that it doesn’t touch upon civil circumstances earlier than the court docket.
Contracts terminated mid-project
Lawsuits point out two different points that affected development timelines: poor climate and 6 strikes, together with a dispute at Hydro Ottawa that delayed work on stations.
One contractor, OWS Railroad Development and Upkeep, argues in its $6.6-million lawsuit in opposition to AtkinsRéalis that it is owed — amongst different issues — hourly wages for workers who couldn’t work when the required observe wasn’t delivered.
The assertion of declare additionally alleges trains have been allowed to run on observe that wasn’t prepared, inflicting the rails to fall out of alignment.
Fits from different contractors equally expressed issues about mismanagement resulting in work being accomplished out of sequence.
AtkinsRéalis terminated the $18.9-million contract with out trigger, when OWS alleges 99 per cent of its work was full.
At the very least two different firms allege their contracts have been inappropriately terminated by AtkinsRéalis or one among its subcontractors properly into the mission.
AtkinsRéalis but to file defence
CBC couldn’t discover a assertion of defence from AtkinsRéalis within the circumstances involving Pomerleau or OWS.
Different lawsuits contain Bradley-Kelly Development Ltd. and GIP, previously often known as Aecon, which have been contracted to construct some roads and lighting.
Statements of defence from AtkinsRéalis in these circumstances alleged costs within the contracts weren’t “topic to escalation.”
The dispute revolves round alleged unpaid invoices, which result in GIP stopping work and AtkinsRéalis terminating its contract.
Much like different disputes, Bradley-Kelly Development Ltd. is searching for cash from GIP that the corporate says it can not present as a result of it hasn’t been totally paid by AtkinsRéalis.
AtkinsRéalis wouldn’t touch upon any of the circumstances in opposition to it. A spokesperson advised CBC one of many circumstances has already been resolved, however wouldn’t verify which one.
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