Snowplow contract cancellation consequences still unknown
A University of New Brunswick contract law expert says the provincial government is likely to be dealing with the cancellation of a snowplow contract with a Quebec company for months to come.
The $500,000 contract was originally awarded to a Matane-based Les Produits Métalliques that submitted the lowest bid.
But that was cancelled because Hartland-based Craig Manufacturing had bid just $1,600 more.
Olabisi Akinkugbe, a law professor, said there could be huge consequences for the provincial government's decision to cancel the original contract.
"The process of quantifying the damage that's been done is the issue here. How far has the Quebec company gone in taking steps to execute the contract? It's early days," Akinkugbe said.
"It's barely two, three weeks since the contract was awarded. So there is a grey area in terms of what needs to be done. In my sense, it could be six months to a year going around these negotiations. It would be record-breaking if they can finish this in six months."
The contract covers the building of 27 plows and 30 plow wings.
He said the provincial government should reach out to the Quebec company to try to explain the reasons for its decision and reach an agreement.
André Tremblay, president of Les Produits Métalliques, said last week the Quebec company had already started building the snowplows and contends the contract can't be cancelled.
