The Long Awaited Announcement Has Arrived - Construction To Resume
Cambridge, Ontario – Cambridge Memorial Hospital (CMH) is pleased to announce a settlement agreement amongst CMH, Bondfield Construction Company Limited, project lenders led by the Bank of Montreal, Zurich Insurance Company Ltd. and Infrastructure Ontario has been reached.
“This is a fantastic day for the communities we serve. Getting this project finished is a top priority for our hospital. Its completion ensures the extensive planning we made to grow services and enhance our clinical programs will get realized. Cambridge, North Dumfries and the Region of Waterloo will continue to be well-served by CMH both in the present and in the future,” says Mike Prociw, Executive Lead, Capital Redevelopment.
The settlement that went into effect December 3, 2020, includes the following key terms:
· The $187 million guaranteed price for the project remains unchanged. CMH is only required to pay for change orders that may arise in the normal course of the construction.
· Costs above the guaranteed price will be funded through a Demand Bond from Zurich as defined in the Project Agreement.
· The hospital received $10 million to compensate for losses related to past delays.
· The Project Agreement and Construction Contract remain in place to ensure completion of the Wing B renovation is consistent with the original project budget and scope.
· Zurich has contracted EllisDon to complete the final phase of this project
· The project’s lenders were paid a lump sum and released of further funding obligations as of the settlement’s effective date.
· The parties exchanged mutual releases that settle any past claims and surrender rights to make future claims, minimizing the risk of future litigation.
EllisDon has installed trailers on site and will begin mobilizing its team this month. Their first course of action is to finalize a schedule and hire sub-trades. Construction is set to begin in February 2021 and is expected to take 48 months to complete.
About Cambridge Memorial Hospital
Cambridge Memorial Hospital is an acute care hospital offering a full complement of services including surgery, maternity, laboratory, diagnostics and emergency. It employs over 1,400 dedicated and skilled health care professionals, technicians and staff, 280 physicians and 500 volunteers providing exceptional care to the residents of Cambridge, the township of North Dumfries and the Region of Waterloo. For more information, visit the link below.