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Spadina subway extension costs soar by $400 million

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by DCN NEWS SERVICES

TORONTO—Costs for the Toronto-York Spadina Subway Extension (TYSSE) continue to roll up and up with taxpayers potentially having to fork over an additional $400 million to cover the project so that it meets the Dec. 31, 2017 deadline.
Spadina subway extension costs soar by $400 million

According to a Toronto Transit Commission (TTC) report, the additional money will go towards known claims settlements; changes in scope that have not been finalized with contractors; an underestimated budget for remaining project scope; co-ordination of the work; risk mitigation strategies; litigation management costs; contingency; and forecasted cost exposure for unresolved claims and litigation matters.

"The TYSSE saw start-up delays, poor performance by some contractors, and scope and design changes, which were not factored into either the schedule or the project budget at the time," the report reads.

"This report addresses those matters, as they are germane to the history of this complex project, which is now approximately 80 per cent complete. This report also details, however, the work done by the project team and various contractors in just a few short months to reset the project, negotiate and settle some claims, and strengthen and improve relationships."

The $400 million will be split between the City of Toronto and the Regional Municipality of York — $240 million to Toronto and $160 million to York.

This brings the total budget cost to $3.184 billion and comes 10 months after the TTC announced it was already $150 million over budget. It stated at the time the project needed a "reset,"

The current approved TYSSE budget is $2.784 billion.

The TYSSE is a six-station, 8.6 kilometre extension of the TTC's Line 1 that will link another municipality (York) to the TTC subway system. The project is meant to dramatically improve rapid transit in the Greater Toronto Area.

The extension is funded by the federal government, the province, City of Toronto and the Regional Municipality of York.

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