A joint venture of Frontier-Kemper, J.F. Shea and Aecon have been awarded a contract to finish the partly-built Seymour-Capilano twin tube tunnels in Vancouver, which was stalled last year over an unresolved ground conditions dispute between Metro Vancouver and the previous contractor, Bilfinger Berger.
Metro Vancouver said it had awarded a Can$181M (US$146M) contract to the JV to complete the 7.1km long tunnels, which were about half excavated for the water treatment and supply project. Work is to start this month for completion by late 2012 or early 2013.
The client added that the original engineering design is to be used and also the two TBMs still underground, which were kept along with all other equipment when Bilfinger Berger’s contract was terminated. The German contractor and Metro Vancouver remain in legal dispute over the contract due to ground conditions and safety claims, its termination and also the withheld equipment.
Tunnelling on the drives stopped in January 2008 and Metro Vancouver terminated the contract in May. Metro Vancouver had said a court hearing has been set for 2011 but there is no trial date.
Frontier-Kemper, J.F. Shea and Aecon won the bid against one other compliant tender. Three JVs had been shortlisted from the prequalification stage, for which 15 firms were invited. Offers were to be submitted on both fixed price and target price approaches. The other shortlisted parties were the JV of McNally, Obayashi and Procon, and the consortium of Dragados, Seli and Schiavone.
Metro Vancouver said overall costs for the entire scheme were estimated to be Can$400M (US$322M) – double the earlier budget. Funds to complete the tunnels were recently approved, totalling Can$200M (US$161M), including allowance for contingencies.
The client confirmed it intends to seek recovery of costs of completing the project from Bilfinger Berger, but the contractor is counter-suing for frustration, damages and costs.
Bilfinger Berger said its lump sum bid, in 2004, was close to client estimates. The next closest bid was Can$186M from the JV that has now won the contract to complete the tunnels (T&TI, August 2008, p11).
