Metro Vancouver recently terminated the contract with Bilfinger Berger Canada Inc., a Germany-based contractor. The company was supposed to construct two tunnels for the Seymour-Capilano filtration project.
Construction costs could double for part of a drinking-water development in North Vancouver after the original contractor was kicked off the project.
Metro Vancouver recently terminated the contract with Bilfinger Berger Canada Inc., a Germany-based contractor. The company was supposed to construct two tunnels for the Seymour-Capilano filtration project.
Metro Vancouver, which operates the Greater Vancouver Water District, hired the company in 2004 to construct 7.1 kilometre twin tunnels for the project, but only about half the work has been done after the company cited safety concerns.
“Bilfinger Berger’s refusal to move forward with their part of this important project is a great frustration,” said Johnny Carline, Metro Vancouver chief administrative officer.
“The contractor has provided us with no practical alternative in terms of completing the work.”
Berger won the contract after submitting a $100 million bid, which was almost half the amount of the next lowest bid.
The regional authority is currently in discussions with two of the other bidders to complete the project.
A spokesman said that Metro Vancouver also plans to sue Bilfinger Berger for any additional costs incurred under a new contractor.
“We terminated (Bilfinger Berger’s) right to proceed with further work,” said Bill Morrell, Metro Vancouver spokesperson.
“By terminating their right to proceed further work, we reserve our right to claim any additional costs. It allows us to pursue additional costs against the bid or contract price.”
Work on the project was suspended by the company in January 2008 due to concerns about the safety of underground workers because of hazardous rock conditions.
“This rock behaviour and these conditions were not previously identified by Metro Vancouver and its engineer,” stated a press release from the lawyer representing Bilfinger Berger.
The contractor was paid $50 million for performing just more than half the job. The two tunnel boring machines are underground at the 4.1 km and 3.8 km points of their respective tunnels.
Metro Vancouver and their consultant engineer made recommendations to Bilfinger Berger for solving the safety problems related to weak and overstressed rock, which is fracturing and breaking out.
The contractor, however, did not agree with the safety of the plan and takes issue with the legality of the termination, it said in a statement.
Recent Comments
comments for this post are closed