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But in a joint statement released Thursday night, Metrolinx, Crosslinx and Infrastructure Ontario said they had reached a settlement that “fairly addresses the challenges that (Crosslinx) has encountered” and ensures the project will be “delivered on time.”
The agreement, which was first reported by the Globe and Mail, will see Metrolinx dip into a contingency fund to compensate Crosslinx for what the transit agency describes as “reasonable” claims.
In an interview, Metrolinx president and CEO Phil Verster would not reveal how much was in the fund, but said about half of it would be used. He argued that because the contingency fund was built into the original project budget, the LRT costs have not increased as a result of the settlement.
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Crosslinx, which is made up of industry heavyweights Aecon, ACS, EllisDon and SNC-Lavalin, will use the settlement to pay for costs related to issues that have affected scheduled work, such as remediating soil contamination. In order to catch up to the construction schedule, some work will have to be accelerated or done in parallel with other jobs. Verster said in some cases crews could be working 24 hours a day, but only if it wouldn’t result in disruption to local communities.
Some payments under the settlement are contingent on Crosslinx meeting the planned September 2021 opening date, Verster said. Under the original terms of the contract, Crosslinx was already facing additional costs if it didn’t meet that deadline.
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According to the joint statement, the “paramount objective” for all parties involved “is to open this new and exciting transit line for customers in September 2021, on time and on budget.”
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