Construction Update #4

Wednesday, April 24, 2019

Cambridge Memorial Hospital Construction Project - Community Update #4

April 24, 2019

At the end of November, I reached out to our community about on-going delays with the new hospital wing. I said that we would be in a position to act should other project stakeholders decline to act.  On December 12, I reported that project lenders took action by bringing a receivership application before the Court in respect of “Project Co” (2423402 Ontario Inc.), which was contracted to complete the CMH Capital Redevelopment Project. The application was granted and a receiver was appointed over Project Co. The receiver’s first action was to declare the construction contract between Project Co and Bondfield Construction Company Limited (“Bondfield”) in default and to make a demand on Bondfield’s performance bond issued by Zurich Insurance Company Ltd. (“Surety”).  This brought optimism to the Hospital that the Surety’s involvement would introduce enhanced project oversight and coordination and that work could recommence after months of very little progress.  We were hopeful that we would be offering care in the new building by April and starting the last phase of our redevelopment project early this summer.

Early in the new year, all liens that were filed against the project and other payment obligations to the various sub-contractors were settled by the Surety. This allowed a number of essential specialized sub-trades to return and finish work.  As a result, work started progressing, but at a slower pace than anticipated.  As of today, the interior of inpatient areas from levels 2, 3 and 4 are more or less finished and the lower level deficiencies are now being addressed.

Despite this progress, there continues to be significant barriers to occupying the building:

  • Roof - leaks and pooling
  • Cladding - condensation, heat loss, drafts
  • Exterior doors - condensation, heat loss, drafts
  • Nurse call system - not conforming to design specifications

These concerns relate to patient safety and building integrity and are paramount to the Hospital. Our staff identified these issues over the past year and they have not yet been remedied to our satisfaction.

We understand that our project is one of a number of other projects in Ontario, including three hospitals, that have experienced a default as a result of Bondfield’s defaults. Negotiations on how to proceed and finish our project are on-going between the lenders, the Surety, Infrastructure Ontario and the Hospital. We are holding firm to our position that in order to take occupancy of the new patient care wing, the serious issues identified above need to be resolved to ensure that the new patient care wing can operate as intended for generations.

Given the significant delays and other issues to date, including Bondfield’s recent insolvency filing, the Hospital, Infrastructure Ontario, the Surety and the project lenders are working to arrange for the completion of the renovation of Wing B (third phase of our project) by a different contractor.

Since December, three scheduled occupancy dates have passed.  As such, we have lost confidence in the schedules that have been provided. Once we receive a schedule that shows a clear path to remedy our major concerns, a viable and realistic occupancy date will be communicated to you.  Know that we share your frustration. We are deeply disappointed that we must wait to grow our services. My assurance to you is that we are working diligently to ensure that once we get occupancy of the new patient care wing, it will measure up to the high standards that our community expects.

Patrick Gaskin
President & CEO
Cambridge Memorial Hospital

Construction Update #3
Construction Update #2
Construction Update #1