City decides not to take up Pier construction proposal from contractor’s insurance company.

By Staff

BURLINGTON, ON – May 25, 2011 The city has decided not to accept a proposal made by the insurance company that provided the performance bond put up by the builder who walked off the Brant Street Pier construction site last December.

The city has sued Zurich Insurance for the value of the performance bond and the insurance company, in an attempt to mitigate their damages put together a consortium that is believed to include Harm Schilthuis and Sons Ltd., the original contractor.

The proposal was delivered to the city early in April and it had to be given the serious consideration and it took time to go through the documentation. . The city received the proposal through Zurich Insurance Inc. in April 2011, but needed time to review the document. City staff provided advice regarding the proposal to members of City Council in a closed session update at the city’s May 11 Community Services Committee meeting.

“City Council gave careful consideration to what we saw within the proposal before making our decision,” said Mayor Rick Goldring. “Council does not believe that this is the right solution to completing the Brant Street Pier. As such, the city will continue on its path to finding a new contractor.” City council chose not to make the reasons for turning down the proposal public from the insurance company and is proceeding with the plan issue a tender document for general contractors to complete the pier, with that tender expected to be released in July 2011. The tender will only be sent to pre-qualified general contractors.

In March, the city hired Morrison Hershfield as the lead engineer on the pier project and announced it is no longer working with former engineer Aecom Canada Ltd.

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