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ION - Waterloo Region's Light Rail Transit
#59
(10-17-2014, 10:37 PM)mpd618 Wrote: I am not aware of any shortcuts taken on the financial side, and I don't know what Shortreed was referring to in saying that contingency was reduced from 10% to 1%. The main contract has been awarded, and there is very little that GrandLinq is not expected to cover out of that fixed price.

I know this Waterloo Chronicle article may be a couple year's out of date, but it lists the project construction contingency at $48 million.  In the report that Council accepted on March 4, 2014, the project construction contingency has been reduced to $10 million (see Table 3), or just over 1% of the project construction cost. Some might argue that the contingency has been reduced because more unknowns have since become known, but I'm skeptical that everything can ever be accounted for.

Variations are covered by Schedule 22, "Variation Procedure" and will keep an army of functionaries busy at both GrandLinq and the Region to determine who will pay for any variations.  For instance, I would wonder how many times GrandLinq (aka Project Co) might find ways to justify getting extra payments under clause 1.2.c, "Project Co will not be entitled to any payment, compensation or extension of time for a Variation except to the extent provided in a Variation Confirmation or Variation Directive in accordance with this Schedule 22." I could see this ending up like trying to get an insurance company to pay an insurance claim: every angle will be applied by GrandLinq to ensure that GrandLinq gets an extra payment.

On related note, anyone who needs a cure for insomnia can read the more than two project agreement dozen schedules here. While I didn't read time all cover to cover, I did find it odd the number of typos that seem to have slipped in. (eg from Schedule 15, "The CN/GEXR freight trains are assigned to use the North Bound LRT Track from Kings Street to Erb Street and the South Bound LRT Track from Erb Street to Northfield Drive. The CN has advised that would like to increase the minimum tangent distance between curves to 30 meters on tracks where their trains will operate.")
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RE: ION - Waterloo Region's Light Rail Transit - by nms - 10-20-2014, 12:50 AM
[No subject] - by Spokes - 08-28-2014, 04:16 PM

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