Bombardier and Metrolinx announced that they have amended their Eglinton Crosstown LRV contract and settled their pending arbitration, showing how re-negotiation and compromise can preserve project schedule and quality, cement customer relationships and eliminate financial uncertainty.
Under the agreement, Bombardier’s LRV production is dramatically cut from 182 to 76 vehicles. However, Bombardier also secured an 18 month extension on its Metrolinx-owned GO Transit operations and maintenance contract. The amended contract “resets the relationship … and brings certainty to the completion of this project,” Bombardier officials said. The financial terms are not disclosed, but Bombardier deserves credit for this recovery.
The Eglinton Crosstown line is scheduled to open in 2021. In May of 2017, in order to ensure vehicle supply for start-up, Metrolinx ordered 61 Citadis Spirit LRVs from Alstom, including 44 slated for potential deployment on Eglinton Crosstown line. Assuming Bombardier delivers on the amended order, Metrolinx will deploy the Alstom vehicles on the Hurontario light-rail project. A Metrolinx press release said: “This new agreement is positive news for commuters who can continue to have full confidence that we are building an excellent transit system for them. We are focused on building a great Eglinton Crosstown LRT with reliable vehicles that are delivered on-time – this is a decisive and significant step towards that goal.” Kudos to Metrolinx, for first ably implementing a feasible vehicle supply contingency plan for Eglinton and then negotiating to secure a portion of the original Bombardier order.