The Louis-Hippolyte-Lafontaine Tunnel will cost 1 billion more than expected, a 75% increase.
It’s the same every time. Who is responsible? Person. The worst part is we talk about a billion like it’s nothing. We have lost all notion of the value of money.
loss of control ?
The challenge comes from contracts that can be renegotiated along the way. The government puts itself in an impossible situation where it has no more room for negotiation. The spines are installed, the work is dismembered, the structure is open.
Imagine Maurice coming to work at home. We sign a $50,000 kitchen and bath contract. Once cabinets, floors, toilet and sink are removed. Maurice tells you it will be $25,000 more or he leaves. You can’t live in a house without a kitchen and toilet, so you pay. That’s what the government told us yesterday.
No to extras
For this reason it is necessary to sign firm contracts without clauses for the unforeseen. The problem is that there are only a few qualified companies for these mega construction sites. There are therefore few or no bidders. The builders have the edge, they bid at high prices, add extras and governments have no choice but to pay or the projects won’t go ahead. The examples tram, subway or 3rd link are similar, as is the cost explosion in retirement homes.
In Quebec, major projects and the tendering process must be given serious thought. Should we make our projects better known internationally in order to diversify the offer?
Will the federal government adjust its contribution?
In 2022, as construction began, Minister Bonnardel announced a reassessment of costs. The federal government announced $427.7 million out of a 2020 total of $1.142 billion. Now that we’re talking $2.497 billion, will the federal government adjust their missing contribution? It’s just as accountable as Quebec.
