A Calgary-based contractor is being sued by Suncor Energy in a $65-million lawsuit that claims a contract to build an emissions reducing sulphur recovery plant was breached.
A Calgary-based contractor is being sued by Suncor Energy in a $65-million lawsuit that claims a contract to build an emissions reducing sulphur recovery plant was breached.
In a statement of claim, Suncor alleges that Propak Systems Ltd. failed to meet crucial deadlines and provided substandard equipment.
The lawsuit claims that Propak’s failure to perform work on its $3.6 billion Firebag project put the company at risk of being delayed by the Alberta Energy and Utilities Board for not meeting emission limits. Suncor also alleges that modules delivered to the project, north of Fort McMurray, were not designed properly and arrived at the plant late. These problems resulted in cost overruns. The additional work to modify and reform the modules pushed the total cost of the project to $111.83 million from the initial Propak estimate of $50 million.
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