Corp Comm Connects


Spadina subway extension could cost an additional $400 million

Thestar.com
Jan. 16, 2016
By Tess Kalinowski

Toronto could be on the hook for an additional $240 million on the overdue Spadina subway extension, while York Region’s share of the anticipated construction claims is about $160 million, according to a report released by the TTC on Friday.

That brings the anticipated new cost overruns to $400 million. Overall the project is now tracking to cost about $3.2 billion.

Originally budgeted to cost $2.6 billion and open last year, the six-stop subway to York Region is now expected to open next year.

TTC CEO Andy Byford would not say how much of the projected overruns are for legal claims by the contractors on the project.

“These are claims. This is not the definitive final number,” he said.

The claims are expected to take years to settle.

One claim from the Sheppard subway remains outstanding and that line opened in 2002.

The TTC announced last year it was hiring engineering giant Bechtel to take over the management of the project for $150 million.

Contractor performance, a delay in federal funding without a corresponding reschedule and scope changes are among the reasons given for the delays and overruns.

Last year, Byford called the Spadina subway extension “an albatross around my neck.”

According to Byford, the project, which predates his tenure, was probably doomed from the outset.

Construction was delayed when the funds failed to flow, but the schedule was never adjusted. The station designs exceeded the money available and had to be pared back.