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light rail shakedown

Ok, I'll be the first to admit having no understanding of matters of high finance.
But if I hire a contractor for my house, and then I change my mind half way through, I expect to compensate them somewhat for their time. I don't expect them to charge me massive "non-completion" penalities. But apparently that's how it works in the heady world of secret contracts

The motion was brought forward after the city received two letters from the contractors Wednesday morning, demanding the city choose one of two options.

In the first letter, the companies offered to accept $175.3 million "in full and final settlement of all claims against the city arising from the wrongful termination of the project agreement."

The amount includes direct costs of $25.3 million and $150 million in lost opportunities, profits and damages.

The second letter said that the companies are alternatively willing to go forward with the original $778-million contract if the city agrees to pay an extra $70 million and makes its decision by the end of February.

CBC - Ottawa's light rail gets another chance - February 14, 2007
What the f***? Demand? Deadlines? Who is in charge? Why don't we just let city council be run by corporations. Who did we hire to build this train system, the mafia? Who put together this contract? Are they retarded?

Don't get me wrong: I love the idea of public transit and rail-based transit.
I tried to sort out all the different options and debate, but all I could come up with was:

1. Run a subway downtown
2. On the face of it, it appears to make sense to use the existing rail lines and the existing trains, as in the Friends of the O-Train proposal

http://www.friendsoftheotrain.org/

In future I advise:

1. Stop this "secret meeting, secret contract" bullshit
2. Don't sign contracts that impose massive penalties if you change your mind
3. How about council is in charge, instead of apparently handing over the power to make demands and set deadlines to their corporate "partners"?

Labels: ottawa, public transit

posted by Richard at 08:01 / permalink (post) | permalink (numeric)