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Bullboard - Stock Discussion Forum 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... see more

TSX:ARE - Post Discussion

Aecon Group Inc > Surrey-Langley SkyTrain
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Post by Dibah420 on Aug 16, 2024 3:45am

Surrey-Langley SkyTrain

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The Skytrain runs in Burnaby, B.C., on April 14, 2020. The total costs of building the Surrey-Langley SkyTrain, a 16-kilometre-long project to connect two fast-growing cities in B.C., have soared 50 per cent to just under $6-billion and the completion date has been delayed for a year.JONATHAN HAYWARD/THE CANADIAN PRESS

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The total cost of building the Surrey-Langley SkyTrain extension in Metro Vancouver has soared by $2-billion and the project has been delayed for a year.

The Transportation Ministry says in a statement the budget of the 16-kilometre extension of the SkyTrain into Langley is now estimated at $5.996-billion, up from the original $4-billion projected.

The project was to be moving passengers in 2028, but the ministry now says it is expected to be in service in late 2029, with the delays attributed to the “current market climate.”

The ministry says the project is being built during a time of “significant market challenges” in B.C., and the costs of the project reflect rising inflation and labour-market challenges.

Once completed, the ministry says the commute from Langley into downtown Vancouver would be just over an hour.

The ballooning costs drew criticism from B.C. Conservative Leader John Rustad, who says the $2-billion increase is an “absolute disgrace,” and shows the NDP government’s inability to manage a major infrastructure project.

Comment by Gabriel on Aug 16, 2024 6:30am
The Metro Vancouver SkyTrain expansion, particularly the Surrey Langley SkyTrain project is overseen by the Transportation Investment Corporation (TI Corp) on behalf of the British Columbia Ministry of Transportation and Infrastructure. The project is under a Community Benefits Agreement designed to provide opportunities for local workers, Indigenous people, and other underrepresented groups and ...more  
Comment by Gabriel on Aug 16, 2024 6:46am
https://www.herbertsmithfreehills.com/notes/construction/2023-05/price-adjustment-clauses-legal-and-commercial-implications-for-construction-contracts Clause 6.2.11  https://www.infrastructurebc.com/wp2/wp-content/uploads/2023/05/SLS-TIC-PRC-RFP-00013-R0-GWY-RFP-Volume-1-Instructions-to-Proponents.pdf https://www.infrastructurebc.com/projects/announced-in-procurement/surrey-langley ...more  
Comment by Henrye on Aug 16, 2024 9:30am
Question to G. If contract value as in Langley train increases significantly to complete, does backlog value get adjusted and increased to reflect actual?
Comment by Ronbromleygross on Aug 16, 2024 10:09am
It should imo.  It's added work over and above original scheduled completion date.  A change order should be issued by owner to increase our portion of the contract value.   Remember that aecon still has to pay for their  overheads past original substantial completion date. 
Comment by Henrye on Aug 16, 2024 10:19am
Makes sense, thanks 
Comment by Dibah420 on Aug 16, 2024 12:51pm
Thank you.  Another exemplar of Progressive/Collaborative   V/S       LSTKs
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