Summary#
Montréal city council unanimously approved an orientation to award Charex inc. a contract for work on lot 2 of Écoquartier Louvain in Ahuntsic-Cartierville, and to increase funding for soil cleanup on the Louvain Est site. This is not the final contract decision: the agglomeration council makes that decision at a later meeting. City staff say the work is intended to provide infrastructure for the eco-neighbourhood and rehabilitate soil.
- The proposed contract covers a new street and related sewer, water, lighting and electrical-duct work, as well as soil management.
- Charex was the lowest compliant bidder in a public call for tenders that received nine bids.
- The approved orientation includes a total spending amount of $15,366,336, taxes included, made up of the contract price, contingency budget and incidental-cost budget.
- It also calls for a separate $2,007,312.15 increase to the Infrastructure and Road Network Department’s funding, through the environmental-liability reserve, for cleanup of the former gas-station area. This amount is net of tax rebates.
- The orientation requires an evaluation of Charex’s performance. The tender documents set a delay penalty of 0.1% of the contract price, excluding taxes and contingencies, per day, with a minimum of $1,000 per day.
What it means for you#
- Residents and future users of the site: The work would extend roads, sewers, water, lighting and the electrical network in the Louvain eco-neighbourhood. City staff say this would make its lots serviceable for development. The decision does not itself approve or guarantee housing or other facilities described in the broader project plan.
- City departments: The Infrastructure and Road Network Department would receive the additional cleanup funding. The city would also evaluate Charex’s performance if the contract proceeds.
- Taxpayers: The decision sets out public spending for the contract and a separate soil-rehabilitation allocation. It does not set a new tax or fee.
Money#
The orientation includes $15,366,336 in spending, taxes included, plus a separate $2,007,312.15 allocation, net of tax rebates, for soil rehabilitation.
- Charex’s bid is $10,311,940.25, taxes included. The total contract spending amount also includes $2,062,388.05 for contingencies and $2,992,007.70 for incidental costs.
- The separate cleanup allocation is for the former gas-station area on the Louvain Est site.
- Charex’s bid was 23.44% below the city’s estimate of $13,469,877.31. The materials do not give the expected use of contingency or incidental-cost budgets.
What is unclear#
- The materials do not give the contract’s work schedule or total duration.
- They do not explain how much of the contingency or incidental-cost budgets the city expects to use.
- The city’s orientation does not itself award the contract; the agglomeration council makes the final decision later.
Case for#
- City staff say the work would complete infrastructure needed to serve the eco-neighbourhood’s lots, alongside cleanup of a former gas-station area.
- Charex’s bid was the lowest compliant one and was below the city’s estimate. The second-lowest compliant bid was $202,188.92 higher.
- The tender documents include daily delay penalties, which give the city a financial remedy if the contractor finishes late.
Case against#
- The total spending amount is substantially higher than Charex’s bid because it also includes contingency and incidental-cost budgets; the materials do not say how those funds will be used.
- The bid was below the city estimate, but the materials do not explain whether the price difference creates any delivery or quality risk.
- The materials do not provide a work schedule, so residents cannot tell from this decision when the street and infrastructure work would be completed.