Contractor files lawsuit against Metro Vancouver over termination of North Shore wastewater contract

North Vancouver, B.C. -

The original contractor for the behind-schedule and over-budget North Shore Wastewater Treatment Plant project is suing Metro Vancouver for the wrongful termination of its contract, as well as millions of dollars in payments it alleges the regional district wrongfully withheld.

The nearly 100-page lawsuit filed in B.C. Supreme Court on Thursday by Acciona Wastewater Solutions LP alleges that Metro Vancouver - formally the Greater Vancouver Sewerage and Drainage District - "repeatedly and wrongfully conducted itself" during the project's design phase "in a manner that subverted the achievement of the commercial purposes."

It also alleges that the regional district was responsible for the vast majority of delays to the project's timeline and demanded that the contractor meet a deadline that it knew was "physically impossible to achieve."

The lawsuit seeks a total of more than $250 million from Metro Vancouver in the form of damages and compensation previously withheld.

The allegations in the lawsuit have not been proven in court, and Metro Vancouver has not yet filed a response to the claims.

The regional governance agency has previously said Acciona "abandoned" the project, leaving it with no choice but to cancel the contract. 

Metro Vancouver's board approved the selection of a new general contractor for the project earlier this month.

The North Shore Wastewater Treatment Plant was originally scheduled for completion in December 2020, but Metro Vancouver agreed to revise the project contract in 2019 to give Acciona an extra two-and-a-half years to complete the work.

Among the challenges that necessitated the extension were difficult ground conditions, space requirements, and geotechnical complications, according to Metro Vancouver.

The cost of the project also ballooned from $700 million - some $400 million of which is being funded by the federal and provincial governments - to more than $1 billion.

By the time the contract was cancelled, Metro Vancouver's leadership had grown concerned that the 2023 revised completion date was also in doubt.

Acciona's lawsuit confirms this, saying that the company informed Metro Vancouver that additional time would be needed to complete the project, and alleging that the regional district insisted on the "physically impossible" 2023 completion date anyway.

In response to the claim, commissioner and CAO Jerry Dobrovolny said the region is "confident that its decision to terminate was justified," and that Metro Vancouver will defend itself against the claims.

"Metro Vancouver is working collaboratively with the new contractor, PCL Constructors Westcoast Inc., and the new designer, AECOM, to develop a new plan to complete the project, including a revised project budget and schedule," he said in a written statement to CTV News.

"We are working diligently to deliver this project as quickly as possible, while considering the best interests of the region."

The full text of Acciona's court submission is embedded below.