Responsibility for delays and cost overruns on construction of Metro Vancouver’s now $1-billion North Shore wastewater treatment plant will be decided by the courts.
Metro’s original contractor, Spanish construction giant Acciona, filed a $250-million lawsuit in B.C. Supreme Court on Thursday. Acciona alleges it was wrongfully terminated from the project by Metro Vancouver, which is now working with a new contractor to complete the facility
Acciona was selected in 2017 to design a $504 million secondary-treatment plant for 250,000 households on the North Shore.
As construction got underway, Acciona alleges in its 98-page notice of claim, Metro “repeatedly and wrongfully conducted itself in the design review process,” set out in the contract and argues that most of the delays and cost increases were caused by problems with Metro Vancouver’s own design.
In 2019, Metro and Acciona agreed to a 2½-year extension and a budget increase to $621 million. But, Acciona alleged, by mid-2021 it was clear the project could not be built on the site selected by Metro without significant changes, including to its deadline.
Metro’s chief administrative officer, Jerry Dobrovolny, said Thursday the regional district “is confident that its decision to terminate was justified.”
“Metro Vancouver will defend against Acciona’s claims, including the unfounded allegations of misconduct,” Dobrovolny said in a statement.
Acciona’s allegations have not been proven in court and Metro Vancouver has not filed a response.
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