Early work on British Columbia’s $3 billion Fraser River Tunnel project has been progressing since January, but the provincial government has decided to exercise a termination option in its contract with joint venture contractor Cross Fraser Partnership after failing to reach an agreement on price, Ministry of Transportation and Traffic officials announced June 15.
British Columbia plans to rebid the work to get the best value, officials said, adding that they would use a new procurement model to allow for more competition and involvement from local contractors. And while Transport and Traffic Minister Mike Farnworth said they had already “received good value from the contractor and have made steady progress with the design, thanks to their work”, officials are trying to maximize their value even further.
“This project is critical to the future of British Columbia, and we are taking it to a competitive process to seek the best possible value for taxpayers,” Farnworth said in a statement. “We know the market is hungry for work on major infrastructure projects and the engagement with industry confirmed that there is strong interest in competing for this project.”
When the project was originally released in 2023, officials structured it as a single progressive design-build procurement. The new strategy will break up the remaining work into a series of smaller procurement packages, which officials compared to the approach used in the Surrey Langley SkyTrain project and the Fraser Valley Highway 1 corridor improvement program.
New RFQs issued, five contract structure
Officials are issuing RFQs to identify qualified contractors for the various phases of the project, the Ministry of Transport and Traffic told ENR. There will be five main contracts for the next phase: the submerged tube tunnel and southern gateway to Deas Island; the north portal in Richmond; completion of the tunnel’s paving, mechanical, electrical and plumbing works; the new Deas Slough Bridge; and other road and civil works related to the project.
The recruitment of the first two contracts began on June 16. For these, the ministry is using a design-bid-build model with target price contracts.
Cross Fraser Partnership is a team of Bouygues Construction Canada Inc., Fomento de Construcciones y Contratas Canada Ltd., Pomerleau BC Inc. and Arcadis Canada Inc. Neither company immediately responded to questions about the situation. The team includes Canadian business units based in France, Spain and the Netherlands, in addition to Pomerleau, based in Saint-Georges, Quebec.
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“We are well-positioned to take advantage of improved market competitiveness,” Farnworth said. “Moving to a revised procurement model creates more opportunities for Canadian and local contractors to participate while ensuring that this national construction project is delivered in the most fiscally responsible manner possible.”
British Columbia officials selected Cross Fraser in July 2024 over two other shortlisted teams. They include Daewoo-GS JV, a team of Daewoo Engineering and Construction Co. Ltd. with GS Engineering and Construction Corp., Hatch Ltd. and Ramboll A/S; and Fraser River Tunnel Constructors, a team of Acciona Infrastructure Canada Inc., Aecon Constructors, Flatiron Constructors Canada Ltd., Strukton Immersion Projects BV, AECOM Canada Ltd. and Tunnel Engineering Consultants VOF.
Work continues despite changes in project execution
The Fraser River Tunnel Project replaces the George Massey Tunnel, a passage under the Fraser River that carries British Columbia’s Highway 99 between Deas Island and Richmond, BC in the Vancouver area. The existing four-lane tunnel was completed in 1959 and is often a bottleneck for traffic with an average speed of 18 mph. The 2,625-foot-long, eight-lane submerged tube tunnel is expected to increase average speeds to 50 mph and meet modern seismic performance standards.
Despite the procurement upgrade, ministry officials say the project is ongoing and major construction is expected to begin in 2027.
Initial site preparations began earlier this year and provincial transportation officials said completed work including design, technical investigations and utility relocations will continue to support the project. Work will continue while the new procurement is underway, including the construction of three temporary material delivery docks, a trestle bridge, access roads and retaining walls.
