10-17-2017, 03:34 PM
(10-17-2017, 01:41 PM)JoeKW Wrote: That means we're paying for operating the LRT as of August 18, right?
Not necessarily. Substantial completion of construction and operations are two separate entities. Tom Galloway mentioned this is a interview last month. Grandlinq Contractors and Grandlinq GP are two related entities. The only documentation I could find for the 30 year operation/maintenance/financing payments was a Regional summary noting they were to start in "mid-2017" but it didn't specify what triggers it. It is in the project agreement somewhere.
Substantial completion is triggered by a completion of a certain value of the contract less known deficiencies. There is a formula which is like 3% of the first $500k, 2% of the next $500k and 1% of the balance. Once this is reached then the contractor posts notice of substantial in the daily commercial news which is what the link was to. This starts a 45 day clock for sub contractors and suppliers to make any claims for non-payment which they make directly to the Region. If no claims are made then after the 45 days the 10% holdback is released to the prime contractor.