Summary#
Montréal city council adopted a position on whether to award a contract to Pronex Excavation inc.; it did not make the final award. The proposed contract is for water-pipe and other infrastructure work on rue Guy, between rue Saint-Jacques and boulevard René-Lévesque, in Le Sud-Ouest and Ville-Marie. City staff say the project aims to renew aging infrastructure and coordinate related street and utility work.
- The city council’s position is to award Pronex the contract for a maximum of $21,906,593.97, taxes included, and authorize separate contingency and incidental-cost budgets.
- The position also calls for an evaluation of Pronex’s performance.
- The work includes replacing and repairing water and sewer infrastructure, rebuilding sidewalks, adding raised bike lanes and drainage features, and installing physical and virtual barriers near the railway bridge.
- Pronex was the lowest compliant bidder in a public call for tenders that received 11 bids. Its bid was 23.3% below the city’s estimate.
- This is an item for the agglomeration council, which makes the final decision at a later meeting.
What it means for you#
- People who live, work or travel in Le Sud-Ouest and Ville-Marie: City staff plan work from the second quarter of 2026 through December 2027. The project includes street reconstruction and changes to sidewalks, bike lanes, traffic signals and lighting. The materials do not set out a schedule of local disruptions.
- Water and sewer users: The project would replace or rehabilitate water pipes and some sewer infrastructure. The decision does not create a new household service, benefit, tax or fee.
- Pronex Excavation inc.: If the agglomeration council approves the award, Pronex would do the work under the tender documents. The contract terms impose a delay penalty of 0.1% of the contract price per day, excluding GST and QST, with a minimum of $1,000 per day. There is no bonus for finishing early.
Money#
The proposed total spending is $28,921,033.25, taxes included.
- This comprises up to $21,906,593.97 for the contract, $2,623,942.57 for contingencies and $4,390,496.71 for incidental costs.
- The city’s estimate was $28,560,803.16. The lowest compliant bid, including contingencies, was $6,654,209.19 below the estimate.
- The materials give no estimate of any longer-term savings or returns.
What is unclear#
- The city council set its position, but the final decision on the contract is for the agglomeration council.
- The city and railway company CPKC had not yet agreed on the roles and responsibilities for operating and maintaining the railway-bridge protection barriers.
- The materials do not give a detailed schedule of construction stages or explain how residents and businesses will be informed about local impacts.
- The decision requires an evaluation of Pronex’s performance but does not specify when or how it will be done.
Case for#
- City staff say the water pipes being replaced date from 1890 to 1912, and that four breaks occurred on this stretch in the last six years. Replacing them could improve the reliability of this part of the network.
- Combining water, sewer, utility and street work could address several needs in one project.
- Staff say the railway-bridge barriers are meant to reduce truck collisions; their summary reports about 50 collisions a year at the bridge.
- The public tender drew 11 bids, and Pronex’s bid was the lowest compliant one.
Case against#
- The proposed spending is substantial, and the contingency and incidental-cost budgets add more than $7 million to the contract amount.
- The lowest compliant bid was 23.3% below the city’s estimate. Staff explain some of the price differences, but a large gap can leave questions about how costs may change during the work.
- The agreement with CPKC on who will operate and maintain the bridge-protection barriers was still to be reached. That leaves an important responsibility unresolved in the supplied material.