Motion to authorize extra water-main cost

Summary#

The decision is titled “Autoriser une dépense additionnelle…” (authorize an additional expense) for water-main work on rue Saint-Antoine Ouest in the Sud-Ouest borough. Montréal city council unanimously adopted a position in favour of authorizing an extra $1,055,231.53, taxes included, for the contract with 9200-2088 Québec inc. (Duroking Construction); the agglomeration council makes the final decision at a later meeting.

  • The extra expense would raise the contract total to $5,869,794.02, taxes included.
  • The work was to rebuild a 750-mm water main and replace water service connections between rue Rose-de-Lima and avenue Atwater.
  • The original contract was awarded in 2021 through a public call for tenders with six bids. The materials do not say whether Duroking’s bid was the lowest compliant bid.
  • The proposed payment covers extra work, higher-than-expected quantities and interest. It does not resolve all of Duroking’s claims against the city.

What it means for you#

  • Agglomeration taxpayers: If the agglomeration council authorizes the expense, most of Montréal’s share would be funded through a borrowing bylaw paid by agglomeration taxpayers. Interest would come from the agglomeration operating budget.
  • Westmount: The city staff report assigns $91,983.50, taxes included, to Westmount for its share of the work.
  • Residents and water users: The decision concerns an existing water-main project. It does not create a new service or change water-user eligibility.
  • Duroking: The proposed payment is the amount the city considers payable. Duroking’s larger claim remains partly disputed and in court.

Money#

The proposed additional expense is $1,055,231.53, taxes and interest included.

  • The amount includes $435,662.65 for higher quantities, $556,020.02 for extra work, and $63,548.86 in interest.
  • The city staff report assigns $963,248.04, taxes included, to the Direction des réseaux d’eau; it gives this as $879,573.85 net of tax rebates. The report says the share is funded by borrowing, except for interest, which comes from the operating budget.
  • Westmount’s share is $91,983.50, taxes included, or $83,993.19 net of tax rebates.
  • The report says Duroking claimed $2,082,984.14, plus interest and other amounts. The city recommends paying only the amounts it has reviewed and considers payable.

What is unclear#

  • The report does not state how much of Duroking’s claim will remain disputed after this payment.
  • The stated shares—$963,248.04 and $91,983.50—add up to $1,055,231.54, one cent more than the stated total.
  • The original work was expected to take 120 days but took 280 days. The report does not give a full account of why the project took longer.
  • No estimate is given for the city’s remaining legal costs.

Case for#

  • City staff say paying the amount they consider due would stop further interest from accumulating on that amount.
  • Staff say payment could narrow the court dispute and reduce the time and resources needed for a trial.
  • The report identifies the extra work and quantity increases behind the recommended payment.

Case against#

  • The extra expense raises the contract total substantially above its original $4,814,562.49, taxes, contingencies and related costs included.
  • The project took 160 days longer than planned, and the report does not fully explain the delay.
  • The payment would not settle the whole dispute: Duroking’s remaining claims are still contested, so litigation may continue.