Ottawa Ontario - The City of Ottawa says it doesn't plan to pay the group building its east-west light rail line $200 million until the network has been handed over.
It also estimates costs of the delay will be as much as $10 million a month.
Last week the city announced the new deadline for the Rideau Transit Group (RTG) to hand over control of the new $2.1 billion light rail line it's building from Tunney's Pasture to the Gloucester Centre 2 Nov 2018.
It's about a six-month delay from the original deadline of 24 May 2018 and means the light rail network won't open to passengers until November at the earliest.
On Wednesday city officials shared a series of memos from the mayor and heads of city committees involved in the project, the city manager, and two from RTG from 24 Nov 2017 and 5 Feb 2018 that reveal more of the financial details the city hopes to cope with the delay.
City manager Steve Kanellakos wrote the city can hold off paying RTG a previously-unspecified payment of $200 million until the project in complete.
The city can also try and get the group to cover costs of the delay.
The city estimates it will cost RTG as much as $8 million to $10 million a month for the ongoing construction costs, which RTG must cover because the company agreed to a fixed price in the contract.
The city already knows that LRT-related detours are costing at least $1.9 million dollars a month, but the city will also have extra costs to keep buses running, monitor construction sites, and cover general strain on the transit system because of the more than five-month delay, according to Kanellakos.
All the city's costs will be documented until the system launches.
The city doesn't expect to have a final tally of the cost of the delay until after the Confederation Line launches.
"It is the city's position that RTG needs to cover our costs," Kanellakos said, adding this will likely mean lengthy negotiations and some disputes with RTG.
In a separate memo, Mayor Jim Watson and the heads of the city's transit and transportation committees said the next update to councillors on the light rail network would be 6 Mar 2018 at the finance and economic development committee.
There will be monthly LRT updates from now on, they wrote.