Fredericton bridge contract awarded unfairly: Quebec firm

A Quebec construction consortium alleges it was disqualified unfairly from a major New Brunswick bridge contract, despite submitting the lowest bid.

The provincial government has awarded the contract to renovate the Princess Margaret Bridge in Fredericton to the Brun-Way Group for $78 million.

The Quebec consortium - a joint venture between Frank Catania Construction and Structal-Bridges - claims its bid for the Phase 2 renovation project was $5 million less.

And it had already started working outthe details with the province because it was the low bidder, according to CEO Paolo Catania.

Then in December, provincial officials went silent, he said. "No feedback. No conversation. No telephone calls."

Last week,the firmlearnedit hadbeen disqualified. "Honestly I've never been in this situation before," Catania said.

Transportation Minister Denis Landry said the Quebec bid had strings attached.

"They put in a price in with three different clauses, if I recall well, or three different conditions. And as soon as they put conditions, or clauses, we were looking for a fixed price and they were disqualified," he said.

Not true, according to Catania. "Our price is a maximum guaranteed price of $73 million. No question."

The 1,098-metre Princess Margaret Bridge, which crosses the St. John River, is about 52 years old. Last May, a 10-kilogram piece of concrete fell from the bridge.

Catania said his firm'sdesign, which features a steel bridge deck, would be good for 75 years.

Atcon involvement unclear

Brun-Way is a consortium, which includes the troubled Atcon Group - the recipient of $50 million in provincial loan guarantees.

Provincial officials said Atcon won't take part in the bridge project because one condition of the loan guarantee was that the company not bid on New Brunswick contracts.

Officials couldn't say, however, whether Atcon will profit from the contract as a co-owner of Brun-Way.

Atcon was removed from a $165 million bridge contract in the Northwest Territories earlier this month because the Miramichi-based company and bridge developer couldn't agree on terms for the second phase of that project, primarily price.

The Graham government had given Atcon millions in loan guarantees, based on the assumption it would be building the NWT bridge.

Opposition leader David Alward has questioned whether taxpayers will be on the hook for the 2008 loan guarantee of $13.3 million and 2009 loan guarantee of $10 million.