Bagotville Airport Terminal Expansion: Major Legal Action and Delays Lead to $3 Million Claim against Engineering Firm Norda Stelo

2023-10-20 21:40:51

The expansion and renovation of the Bagotville airport terminal gave rise to a major legal action and Saguenay demanded more than $3 million from the engineering firm that had obtained the contract for the plans and specifications, Norda Stelo, which did not has not completed his mandate.

Saguenay claims that the termination “without reasons” delayed the project, thereby leading to significant cost increases. The price of materials actually experienced a major increase during the period covered.

Norda Stelo, formerly Roche, was selected in 2014 to draw up plans and specifications for the expansion of the civil airport. However, the wait for subsidies delayed the project. The contract was suspended in 2016, but it was reactivated in 2019, after the granting of a subsidy from Quebec for the expansion project.

The City and Norda Stelo agreed to adjust the fees and the schedule. However, during his tenure, Norda Stelo requested fee adjustments three times. Instead of the expected $400,000, the contract was almost doubled.

In April 2020, Norda Stelo transmitted the plans to Saguenay. The City judged that they were incomplete and required structural, electrical and mechanical corrections. Unable to start construction. The firm therefore chose to withdraw from the contract unilaterally and Saguenay had to return to calls for tender.

Another mandate of $677,000 was therefore granted to Unigec and construction began on January 15, 2021. Saguenay estimates the delay at 246 days, a delay which also results in an increase in costs.

Materials rose 12% during that time, and the city blames Norda’s termination of the contract for the approximately $2.7 million in extra costs for the work.

The overall claim of just over $3 million includes costs for hiring a new engineering firm.

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