24 LEXPERT
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2016
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WWW.LEXPERT.CA
DISPUTES
THE TORONTO TR ANSIT Commission's (TTC) 8.6-km Spadina subway ex-
tension epitomizes much of what can go wrong in a major infrastructure project: it is
about $400 million over budget and many months behind schedule.
All parties to an infrastructure project aim to be "on time and on budget." Yet too
oen the scenario in the construction phase comprises cost overruns and delays. e
result can be protracted and costly litigation among the parties.
However, says Sharon Vogel, a partner at Borden Ladner Gervais LLP in Toronto,
the P3 model is actually less prone to litigation than the traditional model. "e pro-
jects tend to be more complex and large in engineering terms so there is more potential
for issues to arise but, given the contractual provisions in many of those P3 projects, I
would say the potential for litigation [in Canada] has actually decreased."
Karen Martin, a partner at Dentons Canada LLP in Vancouver, says the major liti-
gation risk she has seen in recent years stems from a "disconnect between the procure-
DISPUTES ARE INEVITABLE WITH LARGE INFRASTRUCTURE PROJECTS BUT PREVENTATIVE
MEASURES CAN HELP AVOID MAJOR COSTS AND DELAYS BY SHELDON GORDON
CONSTRUCTION
DISPUTES
PHOTO:
SHUTTERSTOCK
