Bombardier and Metrolinx Make a Nice Recovery on Problematic Eglinton LRV Order

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.

Nossaman’s 30-plus infrastructure attorneys offer clients, colleagues, strategic partners and industry media a wealth of practical experience, insider insight and thoughtful analysis here on Infra Insight. We blog about what we know best, from industry-leading procurements to local and national policy developments that affect the market and our clients.

Stay Connected

RSS RSS Feed

Categories

Archives

View All Nossaman Blogs
Jump to Page

Nossaman LLP Cookie Preference Center

Your Privacy

When you visit our website, we use cookies on your browser to collect information. The information collected might relate to you, your preferences, or your device, and is mostly used to make the site work as you expect it to and to provide a more personalized web experience. For more information about how we use Cookies, please see our Privacy Policy.

Strictly Necessary Cookies

Always Active

Necessary cookies enable core functionality such as security, network management, and accessibility. These cookies may only be disabled by changing your browser settings, but this may affect how the website functions.

Functional Cookies

Always Active

Some functions of the site require remembering user choices, for example your cookie preference, or keyword search highlighting. These do not store any personal information.

Form Submissions

Always Active

When submitting your data, for example on a contact form or event registration, a cookie might be used to monitor the state of your submission across pages.

Performance Cookies

Performance cookies help us improve our website by collecting and reporting information on its usage. We access and process information from these cookies at an aggregate level.

Powered by Firmseek