Tag Archives: Urbacon

Financial review of City Hall, courthouse construction project complete

Guelph, ON, September 9, 2015– An independent financial review has confirmed the final cost of building Guelph’s new City Hall and provincial offences court, including legal costs and settlement fees, is $65,069,735. The findings confirm the values previously reported by the City. The report was presented this afternoon to the Corporate Services Committee. “The financial review, conducted by Deloitte LLP, verified the City of Guelph’s financial tracking of project costs and its record-keeping were sufficient to provide detailed, accurate costing information,” says Guelph’s chief administrative officer Ann Pappert. With the exception of legal and settlement fees, the Civic Administration Building and Provincial Offences Court was within one percent of budgeted construction costs. “This is the final of three deliverables we promised earlier this year,” says… Continue reading Financial review of City Hall, courthouse construction project complete

Guelph City Hall and courthouse financial overview

Project funding (City Hall and Provincial Offences)   Approved budget          $54,850,100 Plus: unbudgeted additional funding            $1,783,248 A. Total project funding          $56,633,348 Project expenses (City Hall and POA)   Project cost          $56,968,414 Settlement costs: Urbacon Limited            $6,635,000 HST                $495,450 Input Tax Credit              ($451,186) Aviva Insurance Company of Canada                $100,000 Moriyama & Teshima Architects              ($150,000) Money paid back from lien claims ($828,427) Total settlement costs            $5,800,837 Legal fees            $2,300,484 B. Total project cost          $65,069,735 Additional cost to the City (B – A)            $8,436,387 Funding the additional cost Settlement Legal/OMB Reserve            $1,693,100 Capital Tax Reserve            $1,500,000 Capital Asset Renewal Reserve            $5,243,287  Total $8,436,387 Resources View the staff report and final accounting of… Continue reading Guelph City Hall and courthouse financial overview

Final actions in Urbacon litigation settled

Resolution marks end of litigation Guelph, ON, June 26, 2015 – The City of Guelph has settled the final two actions from the Urbacon litigation, bringing the litigation to a complete and final conclusion. “As promised, we’re now in a position to share the outcomes of these final two actions regarding the Urbacon litigation,” says Guelph’s mayor Cam Guthrie. One of the actions was with Aviva, the project insurer. The other was with architects Moriyama & Teshima Architects (MTA). The City will pay $100,000 to Aviva, and MTA will pay $150,000 to the City of Guelph, offsetting the overall cost of the settlement by $50,000 for a total of $5,800,837. Mayor Guthrie acknowledges it will now be for Council to discuss how and if it… Continue reading Final actions in Urbacon litigation settled

Statement from the Office of the CAO re: Urbacon Settlement

Last night City Council received a staff report regarding settlement of the City’s litigation with Urbacon and it directed staff to make public the details of the settlement. Read the City Council resolution regarding the settlement with Urbacon. The City and Urbacon have settled the litigation out of court for $6.635 million. I’m pleased that both parties were able to come together and reach settlement. Doing so has saved the City of Guelph further legal costs and provides certainty of the outcome. Next steps As follow up, I have asked the City’s internal auditor to conduct a full review of risk associated with complex capital projects so that we have the benefit of lessons learned during this project, and so that we can apply that information… Continue reading Statement from the Office of the CAO re: Urbacon Settlement

Date set for damages trial between City and Urbacon

Guelph, ON, July 14, 2014 – During tonight’s closed session of City Council, City staff provided an update regarding ongoing litigation between the City and Urbacon—the contractor hired to build City Hall and Guelph’s Provincial Offences Court. On March 31, the court decided the City did not have the right to terminate Urbacon from the project.  The reasons for that decision were released on June 17. A trial to determine whether the City will be required to pay damages to Urbacon is scheduled to start on October 14, and is expected to take place over three to four weeks. The result of the trial, including the amount of damages to be paid, is likely to be released by the court in late 2014 or early… Continue reading Date set for damages trial between City and Urbacon

Council gets update from staff on Urbacon ruling

Official Statement from the Office of the Mayor Guelph, ON, June 23, 2014 – City Council received information from staff regarding the Urbacon ruling at tonight’s closed meeting of Council. “Tonight Council listened to the information staff provided and asked questions,” says Guelph’s mayor Karen Farbridge. “There was no direction given by Council tonight.” Last Tuesday, the City received the reasons for Justice Donald MacKenzie’s ruling in the case between the City of Guelph and Urbacon Buildings Group Corp. Since then staff has been reviewing the court document. The City has reserved the right to appeal the court’s ruling. Guelph’s Chief Administrative Officer, Ann Pappert, explains, “Administration’s role now is to give Council its best recommendations for moving forward. We will be doing that at… Continue reading Council gets update from staff on Urbacon ruling

Statement from the Office of the CAO: Urbacon ruling

Updated July 10, 2014 Guelph, ON, June 17, 2014 – The City of Guelph has received the reasons for Justice Donald MacKenzie’s ruling in the case between the City of Guelph and Urbacon Buildings Group Corp. City staff will now take the time required to review the court document before briefing Council in a closed session meeting June 23. The City will be prepared to comment on the document after Council has been briefed. The judge ruled on March 31, 2014 that the City of Guelph did not have the right to terminate its contract with Urbacon for the construction of City Hall and the renovation of the Provincial Offences Court. The judge reserved the reasons for his decision. Those reasons were delivered this afternoon… Continue reading Statement from the Office of the CAO: Urbacon ruling

Update from the Office of the CAO

Context RE: Urbacon termination Guelph, On, April 4, 2014 – In response to questions I have received, the following is intended to provide clarity on the decision to terminate the Corporation of the City of Guelph’s contract with Urbacon. As Chief Administrative Officer, Hans Loewig made the decision to terminate the City’s contract with Urbacon. There is no resolution of City Council directing staff to terminate the contract. On Sept 19, 2008 Urbacon’s right to work to completion was terminated and they were ordered off the site. On October 17, 2008 Mr. Loewig formally terminated Urbacon’s contract. Ten days later on October 27, 2008 City staff brought the matter to a closed session of City Council seeking direction on litigation. A trial date for damages… Continue reading Update from the Office of the CAO

City hopes to settle dispute regarding City Hall construction

City and contractor to participate in mediation this fall GUELPH, ON, May 8, 2012 – City Council discussed ongoing litigation relating to the construction of Guelph’s new City Hall at its May 7 meeting. The City and Urbacon — the contractor hired to build City Hall — will participate in private mediation this fall with the goal of resolving outstanding issues and reducing legal costs for all parties. On September 19, 2008, the City terminated Urbacon’s right to work and asked the contractor to leave the City Hall construction site –alleging Urbacon was unable to uphold its construction-related commitments. On October 9, 2008, Urbacon initiated a $20 million breach-of-contract lawsuit against the City. The City then served a Statement of Defence and Counterclaim against Urbacon,… Continue reading City hopes to settle dispute regarding City Hall construction

Backgrounder – litigation regarding City Hall construction

updated June 2015 Urbacon’s contract and affected parties In July 2006, Urbacon was awarded a $42-million contract as general contractor for the construction of City Hall and the Provincial Offences Administration (POA) Court. Urbacon was required to provide a performance bond, which it obtained from Aviva Insurance Company of Canada (Aviva) for $21 million. Moriyama & Teshima Architects (MTA) was hired by the City as the projects’ architect and payment certifier/consultant for the project. According to Urbacon’s original construction schedule, City Hall was to be substantially complete by February 28, 2008. An extension for the completion date to August 15, 2008 was negotiated and agreed to by all parties in December 2007. Shortly after, an additional extension to September 8, 2008 was made to accommodate… Continue reading Backgrounder – litigation regarding City Hall construction