December 17, 2018

Cambridge hospital suspends legal action against former contractors on its $187-million expansion project

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Cambridge Memorial Hospital is suspending legal action initiated last month against its former contractor for work still to be completed on its $187-million expansion project.

The hospital, which made the announcement late Thursday, was seeking $14 million in damages resulting from ongoing delays and breaches of contract. The project is two years behind schedule and the completion date is uncertain.

A statement of claim was issued Nov. 16 by Cambridge Memorial Hospital against 2423402 Ontario Inc., Project Co, which was contracted to complete the hospital expansion, and against Bondfield Construction Company, which entered into a construction contract with Project Co for the project.

The claim has not been served, and no other steps have been taken in the litigation. As a result of the receivership order issued on Dec. 6 in relation to Project Co, the claim against Project Co has been stayed.

Hospital officials say they can’t comment further as it is a legal matter.

Earlier this week, the hospital issued an update on progress on the project. It was announced on Dec. 6 that the Bank of Montreal, the project’s prime lender, stepped in and took over control of the stalled project. The bank and hospital are working with Infrastructure Ontario to develop a plan for completing the project, which includes the 240,000-square-foot new wing and renovating 150,000 square feet of the existing hospital.

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