McGill super hospital delays "unusual"

MUHC completion pushed by 16 weeks

CBC News Posted: Jul 10, 2012 2:25 PM ET Last Updated: Jan 15, 2014 4:22 PM ET

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Delays to the MUHC 2:02

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The MUHC construction delays could lead to financial penalties (CBC)

A report released on July 6 by credit rating agency DBRS confirms the new McGill University Health Centre super hospital [MUHC] will be delayed by 16 weeks.

Julie Paquet, the MUHC's communications manager, said that "with all large projects, unforeseen delays can happen. However, it is important that all parties work together to mitigate these risks."

According to the report, contractors have been working overtime and weekends to make up for lost time.

Karl Moore, a management professor at McGill University said this delay could cost the MUHC a pretty penny.

"There's financial penalties if it's not delivered on time or delivered to the things you ask for." He also added that these fees are incentive for businesses to achieve projects faster in order to avoid penalties. 

The date for the completion of most of the work has been pushed back from Sept. 30, 2014 to Jan. 5, 2015.

As it stands, the DBRS claims 35 per cent of the work is done. It blames geotechnical conditions and changes to the project as major factors in the delays.

The credit rating agency said the coordination problems are "unusual" for a project being built using a public-private partnership.

The 217, 500 square metre hospital will be financed over a 30-year period.

 

Clarifications

  • The CBC reported the completion of the MUHC Glenn Yards campus would be delayed from Sept. 2014 to Jan. 2015. This was based on a Dominion Bond Rating Service report asserting the project was 16 weeks behind schedule. The MUHC says they will make up the delay and the project will meet its target completion date of Sept. 2014.
    Jan 15, 2014 4:21 PM ET

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