The TTC board has voted unanimously in favour of initiating legal action against Bombardier for delays in the delivery of the city’s new streetcar fleet.
The company had originally committed to providing the city with 67 streetcars by October, but due to delays in the production of those vehicles, only 10 have been delivered to date.
Furthermore, Bombardier has informed the city that it will not be able to meet a revised production schedule that called for a total of 23 streetcars to be in operation by the end of 2015.
The motion approved by the TTC board today authorizes the TTC’s legal counsel to immediately commence legal action against Bombardier for “all damages sustained by the TTC relating to or arising from the schedule delays in the delivery of the streetcars.”
A second motion also approved by the board authorizes TTC management to “consult with alternative suppliers for delivery of the remaining TTC streetcars should Bombardier be unable for whatever reason to fulfill this order within contractual timelines.”
According to a statement released by the TTC earlier this month, the transit commission hopes to recoup a $50 million penalty for late delivery and seek additional damages for “maintenance and overhaul costs of the existing streetcar fleet, service and customer impact costs, and TTC staff time that has been expended on this matter.”
The $1.25 billion contract with Bombardier calls for the delivery of all 204 streetcars by the end of 2019.
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