Today the City of Ottawa declared the general contractor on the Strandherd-Armstrong Bridge to be in default.
This decision follows discussions with the contactor’s court appointed receiver and the City’s bonding company and is being pursued as the best course of action to ensure the project continues to move forward and is completed as quickly as possible.
Work on the bridge is approximately 60% complete and measures remain in place to ensure its completion.
It is important to recognize that situations such as this create schedule setbacks and will impact construction. However, the action taken by the City today is geared to limit any project delays and will allow the bonding company to assume responsibility for the delivery of the project regardless of what happens with the contractor as a result of it being placed into receivership.
The City requires performance bonds on all major construction projects to guarantee project completion and minimize financial exposure to taxpayers. Declaring the general contractor to be in default and activating the $23 million performance bond will assist the City in its ability to ensure the timely completion of the project as well as the quality and safety of the bridge.