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Cohen Highley LLP

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Right of way delay costs BC $36 million
February 9, 2002

A settlement was reached recently in a dispute involving one of the guideway construction contracts for the Skytrain extension project. The contractor, SAR Transit, has been awarded an additional $42 million. SAR Transit will now receive total contract payments of $272 million.

The most contentious issue in the dispute related to a four and one half month delay at the start of the project caused by the government's delay in providing access to the site. Environmental permits and right of way acquisition was not completed in time to meet contract deadlines. The mediated settlement provided a sum of $36 million for the extra costs incurred by the contractor due to the delay. The balance of the additional payments was due to design changes and unforeseen ground conditions.

The settlement resulted from a mediation conducted by Bruce MacDonald, a retired B.C. Supreme Court justice.

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