Laval saves $4.5 million in overcharged construction contracts
It's not often you would consider a $5 million dollar bill a win, but that's the case for the City of Laval.
In a statement, Laval Mayor Marc Demers said Quebec Superior Court has approved an out-of-court settlement between his city and Groupe Hexagone.
The construction firm was suing the city over unpaid bills, totalling $9.5 million dollars from contracts originally signed with companies once owned by Tony Acurso. They were later sold off and purchased by Hexagone.
However following the Charboneau Commission into corruption and collusion in the construction industry, there were questions raised regarding the actual costs, which led to Laval suspending payments.
The agreement will see Laval pay Groupe Hexagone $5 million, nearly half of the original bill.
"This deal with Groupe Hexagone shows that the City of Laval is resolute in its efforts to recover funds unfairly diverted as part of the awarding or management of public contracts" Mayor Marc Demers said in a statement.
The City of Montreal was in the same boat, owing nearly $13 million with both sides agreeing on a final bill of $4 million.