May 1, 2018
Today, the City of Edmonton issued Thales, the contractor of the Metro Line CBTC signalling system, a Notice of Default. Thales failed to meet an April 30, 2018, deadline for contract completion set by City Council. This begins the resolution process under the contract, which may end in termination.
“Council has given us clear direction that continuing to wait for Thales to deliver on contractual obligations is not acceptable,” said Adam Laughlin, the Deputy City Manager of Integrated Infrastructure Services. “This is a legal step toward an optimal resolution which could still be months away.”
Under the contract, Thales will have an opportunity to respond to the Notice of Default.
“This is a process within the contract,” Laughlin said. “It is frustrating. We, along with Edmontonians, are frustrated. Today is an important step but it is not the final step.”
City Council endorsed this course of action after receiving an in-private update. They also approved of Administration investigating alternative operations on the Metro Line, should that become necessary.
The City awarded Thales the contract for the Metro signalling system in May 2011. The contract is worth $55 million.