Summary#
Montréal city council approved a contract with FER-PAL Construction ltd. for lead water-service replacements and road work in Ahuntsic-Cartierville and Villeray–Saint-Michel–Parc-Extension. The decision authorizes the contract, contingency funds and incident-related funds, for a stated total of $16,415,129.11, taxes included. City staff say the work supports the goal of removing lead water connections across Montréal by the end of 2032, where required.
- The contract covers about 387 water-service replacements, road resurfacing over about 37,500 m², and reconstruction of 6,513 m² of sidewalks.
- The work includes private sections of connections that are lead or galvanized steel and are, or have been, in contact with lead, under bylaw 20-030.
- FER-PAL was the lowest compliant bidder. Four bids were compliant; five firms submitted bids.
- The resolution also requires an evaluation of FER-PAL’s performance.
- The contract includes daily late penalties, ranging from $500 to $3,500 for specified delays and failures. No bonus is provided.
What it means for you#
- Residents in the two boroughs: Streets and water connections identified for the work are to be affected. The specific street list is not included in the supplied material.
- People with affected private water-service sections: The work includes certain private sections, but this decision does not say whether owners will pay or be reimbursed.
- FER-PAL Construction ltd.: The company must do the contracted work under the tender documents. The decision provides for penalties for specified delays and failures.
- Taxpayers: The city authorized the contract and additional budgets. The decision does not explain how the costs are divided among funding sources or whether any amounts will be recovered from property owners.
Money#
The decision states a total authorized expense of $16,415,129.11, taxes included.
- The contract is for up to $14,462,658.69, taxes included. The city also authorized $1,446,265.87 for contingencies and $506,204.56 for incident-related costs, each taxes included.
- The three listed amounts add up to $16,415,129.12—one cent more than the stated total.
- FER-PAL’s bid was 14.25% above the city’s estimate of $12,658,836.79. It was 2.98% below the second-lowest compliant bid.
- The available material gives no breakdown of who ultimately pays for work on private connection sections.
What is unclear#
- The contract’s duration and any extension options are not stated in the supplied material.
- The attached street list is not supplied, so the precise locations cannot be identified here.
- The decision does not explain how private-section costs will be assigned or recovered.
- It does not explain how the contingency and incident budgets will be used or reported.
- The stated total differs by one cent from the sum of the three authorized amounts.
Case for#
- Combining water-service replacement with road and sidewalk work may allow related construction to be coordinated in the same areas. City staff say the road work is part of city pavement-renewal programs.
- The work directly replaces lead connections in the specified locations. City staff say this contributes to the city’s goal of removing lead connections by the end of 2032, where required.
- Four bids met the requirements, and the city awarded the contract to the lowest compliant bidder.
Case against#
- The lowest compliant bid was 14.25% above the city’s estimate, and the decision authorizes additional contingency and incident budgets.
- The decision does not state the work’s duration, the exact streets in the supplied materials, or how costs for private sections may affect property owners.
- The daily penalties set deadlines for certain work, but the materials do not say how the city will monitor progress or report whether the work is completed on time.