Tuesday, August 16, 2011

Arbitration between Montréal and Génieau for cancelled water management contract


Linda Gyulai reports in the Montreal Gazette here that the City of Montreal and Génieau have begun arbitration to settle the company’s $34-million claim for compensation on its cancelled $355.8-million water-management contract. Background for this dispute is described in Gyulai's article as follows:

«Mayor Gérald Tremblay announced the city was cancelling the 25-year contract in September 2009, less than two years into the deal, after a report by the city’s auditor-general found irregularities in the way it was awarded.

Auditor-general Jacques Bergeron found overspending, administrative laxity and poor communication in the awarding of the contract, which the city council approved unanimously and without debate in November 2007. His findings included that competition was narrowed during the bidding process in 2006 and 2007.

The contract provided for the city and the company to call in an arbitrator in case of dispute instead of going to court, Sabourin said.

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