Summary#
Montréal’s city council adopted an orientation to award Pronex Excavation inc. a contract to rehabilitate a sewer outfall on Papineau Avenue in Ville-Marie. The agglomeration council makes the final decision at a later meeting. City staff say the goal is to repair a badly damaged conduit and reduce the risk of failure.
- The proposed contract is for $3,180,532.15, taxes included. Pronex was the lowest compliant bidder in a public call for tenders with three compliant bids.
- The work includes rehabilitating 106 metres of sewer, rebuilding a sewer manhole, managing and diverting wastewater, inspecting the conduit, and restoring the site. The work uses inserted pipe sections and grout, rather than open trenching.
- The orientation also sets aside $477,079.82, taxes included, for contingencies and $254,442.57, taxes included, for other project costs. Together, the proposed total is $3,912,054.54, taxes included.
- Pronex must have its performance evaluated. The contract documents also provide for penalties if work is late.
What it means for you#
- People using Papineau Avenue and nearby access routes: The work includes traffic signs and managing impacts on routes to the construction site. The materials do not give a detailed traffic plan.
- Residents and users of the sewer system: The project is intended to repair the conduit and maintain sewer service. City staff report that inspections found major damage, including cracks, shifted joints, and missing wall sections.
- Agglomeration taxpayers: The project expense is assigned entirely to the Montréal agglomeration and is to be financed through borrowing bylaw RCG 23-029.
- Pronex Excavation inc.: If the contract proceeds, the company would carry out the work and undergo a performance evaluation.
Money#
The proposed total expense is $3,912,054.54, taxes included; the net amount after tax rebates is $3,572,227.23.
- The total comprises the contract ($3,180,532.15), contingencies ($477,079.82), and other project costs ($254,442.57).
- The agglomeration would pay 100% of the expense, using financing under borrowing bylaw RCG 23-029. The materials do not give the borrowing’s repayment schedule or interest cost.
- The contract is estimated to take 210 calendar days. No start date is provided.
What is unclear#
- The materials do not say when work would start or give a detailed schedule.
- They do not explain how the contingency and other-cost budgets would be approved and tracked as they are spent.
- The penalty amounts for late work are not included.
- The materials do not give a detailed plan for traffic impacts or access to the work site.
Case for#
- City staff say the conduit was built before 1914 and has serious structural damage. They report a risk of failure and say nearby ground settlement has been observed.
- Staff say repairs could reduce the risk of disruption and avoid a more difficult and costly open-trench reconstruction later.
- Pronex’s bid is 23.45% below the city’s estimate, and staff say the company has experience with similar work at the Port of Montréal.
Case against#
- The bid is substantially below the estimate. Staff attribute much of the difference to one item in the bid, but the materials do not show how the actual cost of that work will compare with the estimate.
- The project sets aside nearly $731,523 for contingencies and other costs beyond the contract price. The materials do not explain how much of these budgets is expected to be spent.
- One prospective bidder withdrew because of technical uncertainties, a tight schedule, and difficulty obtaining subcontractor prices. That points to project challenges the materials do not fully resolve.