Yukon terminates $160M bridge contract with Graham

Key Takeaways:

• The Yukon government and Graham Infrastructure LP have mutually agreed to terminate their contract as the project shifts into a remediation phase to address structural issues.
• Technical challenges regarding soil stability and structural movement previously led to the dismissal of the project engineer and a significant budget increase to $194 million.
• The remaining construction work for the territory’s largest capital project will be put back out to tender once a new remediation design is finalized in the coming months.

The Whole Story:

The Yukon government and its lead contractor have mutually agreed to terminate their contract for the Nisutlin Bay Bridge replacement project, Highways and Public Works Minister Linda Benoit announced Tuesday.

The decision to part ways with Calgary-based Graham Infrastructure LP comes as the territory shifts the $194-million project into a remediation phase. Benoit said ending the current contract is a strategic move to ensure a cost-effective path forward while minimizing the risk of further delays or mounting expenses.

The minister thanked Graham Infrastructure for completing the majority of the work on the complex project to date. She noted that the remediation design will be completed in the coming months, at which point the remaining construction work will be put back out to tender.

Benoit stated that the existing Nisutlin Bay Bridge remains safe and fully operational. It will continue to be monitored and maintained until the new crossing is complete.

The move to end the construction contract follows the government’s decision last month to axe the project’s engineer of record. In April, the territory terminated its contract with WSP, with Benoit stating at the time that different expertise was required to move the project forward.

The engineer’s dismissal was linked to technical hurdles that surfaced last summer when soil conditions near the north and south abutments of the new bridge were found to be problematic. Benoit later confirmed there were issues with movement in the structure that necessitated a long-term remediation solution.

The bridge replacement at Teslin is the largest capital project in Yukon’s history. Originally awarded to Graham Infrastructure for $160 million in 2022, the project’s estimated cost has since ballooned to nearly $194 million due to technical challenges and changes to environmental authorizations.