Montreal will pay $6 million to Groupe Geyser to settle its dispute with the company responsible for building the new paddocks at Circuit Gilles-Villeneuve.
In June 2021, Geyser had filed a lawsuit for $ 10.3 million plus taxes against the Société du parc Jean-Drapeau, responsible for the paddock file. She was claiming this sum for unpaid invoices and additional costs related to the construction site.
It should be recalled that the Geyser Group had been selected for the construction of new paddocks and a contract worth nearly 60 million had been awarded to it by the City in April 2018. The old paddocks having exceeded their useful life, the City had committed to renovate the infrastructure in order to be able to host the Grand Prix until 2024 and comply with the standards imposed by the International Automobile Federation (FIA). Originally, the construction of the new paddocks had been estimated at 30 million dollars.
The new paddocks were inaugurated in May 2019, three weeks before the Formula 1 Grand Prix was held. But the case was far from settled as Geyser went to court two years later.
Last July, the legal process was suspended to allow the parties to enter into negotiations through mediation. The City and Geyser finally reached an agreement that the executive committee approved last Wednesday during a closed meeting.
The City believes that the negotiations have made it possible to “substantially” reduce certain amounts claimed by Geyser, can we read in the documents provided to elected officials. This agreement also saves him the costs of a trial, which, it was feared, could have been lengthy.
While the agreement settles the dispute with Geyser and several subcontractors, it does not settle the issue of water infiltration and drainage problems that had been observed in the new paddocks in 2021, after the end of the work. These water infiltrations are still “under investigation”, specify the documents of the City.
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