BURLINGTON, ONT. — A settlement has been reached related to the Brant Street Pier’s first construction contract, which was plagued by delays and litigation.
Nine parties were involved in mediation on June 18 and 19. The settlement is still subject to the final approval of two of the parties’ boards and there is a confidentiality agreement related to some of the terms.
Harm Schilthuis and Sons Ltd. began construction on the pier in fall 2006. A crane accident and complications following the pier’s first concrete pour triggered initial construction delays in the summer of 2008.
The project was further delayed in the summer of 2009 when the steel in the structure failed quality tests. After the crane collapse, original design engineer AECOM determined that the weld quality was unacceptable in 27 of the pier’s 36 main structural steel beams.
In 2009, work halted and a dispute ensued between the city and the contractor.
As a result of the mediation, Harm Schilthuis and Sons will receive a settlement of $1.75 million in cash as well as other amounts.
“I am proud of this entrepreneurial and family owned company. Our concerns about the challenges facing the pier guided us in our actions. We maintained our position with dignity and grace — simply because it was the right thing to do. The result of this settlement is proof of this,” said company president Henry Schilthuis in a statement.
The City of Burlington will receive $1.5 million in cash. The city will not have to pay a $500,000 holdback to one of the nine parties.
The net benefit to the city of the mediation is a $2-million settlement. No contribution in any form to the settlement shall be deemed an admission of liability, and any such liability is denied.
“This settlement more than compensates the city for the costs of litigation to date,” said Burlington’s interim city manager Pat Moyle in a statement.
“It also means the city can avoid the cost of completing all remaining legal proceedings, including preparing for and attending at trial, which is estimated to cost between $1.5 and $2 million.”
Schilthuis said the litigation was not necessary.
“Quite frankly, we believe this process could have and should have been avoided. We did what we had to do to protect our company, and feel vindicated in all we have done to achieve the settlement. We wish the people of Burlington much enjoyment of their waterfront.”
The new construction team was awarded the project in 2011 and included Graham Infrastructure, Morrison Hershfield and project manager METTKO. The pier was opened to the public in June 2013 and extends 137 metres over Lake Ontario.
The total cost of the Brant Street Pier construction is $14.4 million with $4.4 million funded from the Canada-Ontario Infrastructure Program and Halton Region providing $2.5 million.
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