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Aecon Group Inc T.ARE

Alternate Symbol(s):  AEGXF

Aecon Group Inc. is a Canada-based construction and infrastructure development company. The Company delivers integrated solutions to private and public sector clients throughout Canada and other countries. It operates through two segments within the infrastructure development industry: Construction and Concessions. Its Construction segment includes all aspects of the construction of both public and private infrastructure, primarily in Canada, and internationally and focuses primarily on the civil infrastructure, urban transportation solutions, nuclear power infrastructure, utility infrastructure and industrial infrastructure. Its Concessions segment include the development, financing, build and operation of construction projects primarily by way of public-private partnership contract structures, as well as integrating the services of all project participants. The Company’s projects include Annacis Water Supply Tunnel, Bell Canada Gigabit Fiber Service, Finch West LRT, and others.


TSX:ARE - Post by User

Post by Gabrielon Sep 30, 2023 8:58am
246 Views
Post# 35663111

Owners are vulnerable as claims can be immense

Owners are vulnerable as claims can be immense

First: assembling, justifying and building these claims take about a year. You're talking hundreds of pages mostly in annexes. I prepared such for a > 1B PPP.


Second: The owner has to recruit an expert team to rebuff the portions of the claims that may not be directly related to COVID. The expert team has to go through hundreds of pages  and then prepare their report. Another year or so.

Second: the claims and both positions are submitted to the dispute adjudication board (DAB) who has to make a determination. The DAB process for such claims also takes a few months easily  

Owners facing such claims are vulnerable because the private partner will likely add everything and they have to defend themselves.

The DAB will recommend a settlement figure. None of tne two parties will necessarily be happy so we move to arbitration. That's another delay of about a year.

and if both don't like the settlement we go to the courts.
 

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