Eglinton contractual claims resolved for $325 million
Metrolinx and Infrastructure Ontario are pleased to have reached a settlement agreement with Crosslinx Transit Solutions (CTS) that sees various claims relating to the Eglinton Crosstown Line resolved, and pushes back the project’s opening date by a year.
The project, which is worth $5.5 billion, was scheduled for completion in 2021, but delays have pushed that date back. Substantial completion has since been targeted for the end of September 2022, with an in-service date planned for “several months later.” Metrolinx says it will work with the Toronto Transit Commission to track CTS’s performance, and determine when the line will open for passengers.
The latter years of work on the project have been plagued by disputes. In October 2020, CTS filed a lawsuit against Metrolinx and Infrastructure Ontario in which it argued that it should not be held responsible for delays and cost overruns related to the COVID-19 pandemic.
The Ontario Superior Court of Justice ruled in favour of Crosslinx in May. The court found that the pandemic did constitute an emergence under the contract to build the project. A statement issued by Metrolinx and Infrastructure Ontario on December 22 confirms the terms of the settlement, which is valued at $325 million.
As part of the settlement, CTS is prevented from making future claims on a variety of issues that are now considered fully settled. Additionally, Metrolinx and Infrastructure Ontario says they, “continue to strongly disagree with any finding of claim entitlement for COVID-19 causes under the CTS Project Agreement.” The project authorities say they will appeal the court’s decision.
The Metrolinx/Infrastructure Ontario statement concludes:
“The Eglinton Crosstown Line is progressing well and is nearing completion. The rail vehicles have been delivered and are being tested on the line. The last parts of the track were installed this November and the stations work is proceeding to completion. The testing of the rail vehicles will continue into next year, along with the installation of the train signals and communications systems that enable safe train movements.
These large transit projects are very complex with significant delivery and schedule risks that we continue to actively manage together with CTS. While challenging, the Eglinton Crosstown Line is both a hugely exciting and a very significant transit addition in the city.”