The British Columbia government is terminating its contract with Cross Fraser Partnership after failing to reach commercial terms.
The consortium comprising Bouygues Construction Canada, Fomento de Construcciones y Contratas Canada Ltd, Pomerleau BC Inc, and Arcadis Canada Inc was awarded the design-build contract for the Fraser River Tunnel project in September 2024.
The BC government says that while significant progress had been made on design and current construction work, agreement on the commercial terms for final construction of the tunnel was not reached. It will now retender the work to seek the best value and with a procurement strategy designed to strengthen competition and allow for more local contractors.
“We’ve received good value from the contractor and have made steady progress with the design, thanks to their work. However, this project is critical to British Columbia’s future, and we are taking this back to a competitive process to seek the best possible value for taxpayers,” said minister of transportation and transit Mike Farnworth. “We know the market is hungry for work on major infrastructure projects, and engagement with industry confirmed there is strong interest in competing for this project.”
The revised procurement strategy will divide the remaining work into several procurement packages, allowing a broader range of qualified firms to bid on portions of the project. The province used a similar approach on the Surrey Langley SkyTrain project and the Fraser Valley Highway 1 Corridor Improvement Program, where breaking work into multiple contracts helped strengthen competition, improve flexibility and support local companies.
“Moving to a revised procurement model creates more opportunities for Canadian and local contractors to participate while ensuring this nation-building project is delivered in the most fiscally responsible way possible,” said Farnworth.
The project previously went to market in 2023 as a single, large progressive-design-build procurement. The government says the revised procurement model better reflects current market conditions while ensuring continued momentum.
Construction on the project will continue while procurement for future phases is under way. Design work, technical investigations, utility co-ordination and other early works completed will continue to support project delivery.
Early construction work started in January this year, including tree clearing, utility relocations and preparation for the construction of a casting basin. Temporary infrastructure construction is also under way, including the construction of three jetties for the delivery of materials, a trestle bridge onto Deas Island, access roads and retaining walls for the casting basin on Deas Island.
The Environmental Assessment Office is expected to complete its review of the project before the end of this year. Major construction is still anticipated to begin in 2027.
The province is also in discussions with the Canadian government regarding federal support.
The eight-lane Fraser River Tunnel will replace the 65-year-old George Massey Tunnel. It will be an immersed tube tunnel with three general-purpose travel lanes and a dedicated public transit lane in each direction. It will also feature a separate multi-use path for walking, cycling and other active transport.
