SNC-Lavalin Group and its joint venture partner, Innisfree, have launched a C$330 million (US$250) million lawsuit against the McGill University Health Center (MUHC) and the government of Quebec over cost overruns in construction of the MUHC's Glen site hospital complex P3 project in Montreal.

The joint venture is claiming compensation for additional costs incurred during the design and construction of the hospital project, as well as for present and future costs related to managing and maintaining the hospital centre’s assets.

According to local sources, the additional costs are directly related to the numerous changes requested by the MUHC to enhance and expand the health complex above and beyond the scope of the contract and MUHC’s inability to provide information about the facility’s layout and equipment in a timely manner.

On the other hand, the Quebec Health Ministry has revealed that the compensation sought by the consortium during negotiations over the past two years has constantly risen and it was not justified.

Gaétan Barrette, Quebec Health Minister, said:

 “A negotiating tactic that will surely not have its intended effect. The contract stipulates a certain number of [unexpected items] that we are responsible for paying and we will pay those. But what they are asking for is light years beyond what we believe is acceptable. What they are asking for is unjustified. According to the terms of the public-private partnership (PPP) agreement between the consortium and the government, the risk of any cost overruns is supposed to be transferred to the builder."

Under its agreement with the MUHC, the joint venture is responsible for financing, designing, building and maintaining the hospital complex as well as managing its assets until September 30, 2044.

The hospital complex covers an area of 250,550 square metres and featues ultra-modern facilities. The hospital complex offers spaces devoted to world-class teaching and research, as well as 20 operating rooms, 154 pediatric and 346 adult single-patient rooms, both with private bathrooms and space for visitors.