October 1, 2024
THE VARSITY The University of Toronto’s Student Newspaper Since 1880
Vol. CXLV, No. 5
Why three construction companies are suing U of T for more than $9.2 million Jessie Schwalb Business & Labour Governance Correspondent
Since January, three construction companies have independently sued U of T, collectively demanding more than $9.2 million in damages from the university. These companies — EllisDon, BDA Inc., and Terraprobe Inc. — claim that U of T didn’t fully compensate them for work completed on various projects in UTSG. As of the time of publication, the three cases remain ongoing. At a public Planning and Budget Committee meeting on September 17, U of T Vice-President, Operations and Real Estate Partnerships Scott Mabury did not disclose the amounts the university had budgeted for these projects to the companies it hired. Additionally, the university did not fully disclose the extent of the court cases to the committee. He also informed the committee that the university hopes to settle these disputes but tends to resist paying additional costs associated with delays. “The debate comes down to: wait a minute, are we over [time] because of something we could have done, or is this something [the companies] didn’t do?”, Mabury said. Cost contention Tamer El-Diraby — a professor in U of T’s Department of Civil and Mineral Engineering — who specializes in construction project management, explained in an interview with The Varsity that disputes between owners and contractors over how to adjust costs happen frequently. El-Diraby said that “litigation is not as common [as changes and disagreements], because people know everybody will be losing.” Litigation consumes time, can delay projects, and forces both parties to deal with lawyers and court fees. However, these types of cases still happen often, according to Benchmark Legal Offices. From 2019–23, the Ontario Superior Court of Justice (OSCJ) database — which displays the court’s active and completed cases — showed that only two constructionrelated companies filed civil cases against U of T: NRK Mechanical Ltd. in 2020 and JR Certus Construction Co. Ltd. in 2021. However, between January and May 2024, three construction companies filed civil cases in the same court, naming U of T as the primary defendant — the party that is being sued. On January 12, Canadian engineering and environmental consulting company Terraprobe filed a case against U of T for $52,875.51. According to OSCJ court files obtained by The Varsity, Terraprobe claims that it entered into multiple contracts with U of T from 2016 to 2021, agreeing to work on projects including the university’s Landmark Project at King’s College Circle. Terraprobe argued that for each contract, U of T and Terraprobe agreed that Terraprobe would submit invoices for completed work, and U of T would pay within 30 days. Terraprobe claims that U of T failed to fully pay these invoices.
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