Quote:
Originally Posted by LeadingEdgeBoomer
Aecon is constructing this building. Today Aecon reported some big financial losses due to problems with a Suncor project in the oil sands that Aecon is working on.
It made me think of the problems they have had with the foundation of this building. It was put about six months behind schedule because of unexpected problems with the soil and rock formations at the site.
I assume overcoming the problems has raised the cost of the project. Does Aecon have to absorb the added costs or does the university/province have to come up with more money? I suppose it depends on the wording of the contract they have.
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In short.... no.
The rock issues were an unforeseen condition, AECON will pass their cost along with appropriate markups for overhead and profit directly to the university.
If it were a design build, then it would be on AECON, but i don't believe this one was.