Summary#
Montréal city council unanimously adopted an orientation to authorize an extra $12,144,522.14, taxes included, for Pomerleau inc.’s water-pipe rehabilitation contract on rue de la Cathédrale, from rue Saint-Jacques to the McTavish reservoir in Ville-Marie. This would raise the contract total to $49,551,168.30, taxes included, and extend the work by 77 days. The agglomeration council makes the final decision at a later meeting.
- The extra money is for rehabilitating additional damaged sections of the pipe and maintaining construction-site installations.
- The contingency budget would rise from $3,400,604.20 to $15,545,126.34, taxes included.
- The contract was originally awarded to Pomerleau after a public call for tenders that received five bids. The materials do not say whether it was the lowest compliant bid.
- The added work would extend the contract from 395 to 472 calendar days. The revised completion date is March 2027.
What it means for you#
- Residents and water users: The work concerns a major pipe that carries about 45% of the drinking water sent to the McTavish reservoir, according to city staff. The decision does not directly change household water rates or create a new water service.
- Taxpayers in the agglomeration: If the agglomeration council approves the added expense, the agglomeration would pay for it through the water network directorate.
- Pomerleau inc.: The company would carry out the additional rehabilitation work under its existing contract.
Money#
The proposed added expense is $12,144,522.14, taxes included, or $11,089,567.46 net of federal and provincial tax rebates.
- The contract total would rise from $37,406,646.15 to $49,551,168.30, taxes included—an overall increase of 32.5%, according to city staff.
- City staff say the total contingency budget would equal 46% of the contract’s work cost.
- No separate estimate of future savings or other financial returns is provided.
What is unclear#
- The materials do not give an itemized breakdown of the additional $12.1 million.
- They do not say whether Pomerleau’s original bid was the lowest compliant bid.
- The materials do not describe any new reporting or oversight process for use of the enlarged contingency budget.
Case for#
- City staff say a 2026 inspection found 145% more damaged sections than the 2019 inspection. Addressing the advanced damage during the current work could help secure this important part of the water network.
- City staff say refusing the increase would require a new call for tenders, risking higher costs and delays to the pipe’s return to service.
Case against#
- The added expense would raise the contract’s overall value by 32.5%, and the contingency budget would reach 46% of the work cost.
- The second inspection could not be done before the original tender, according to city staff. This meant the contract’s initial budget did not cover the full amount of additional work now identified.