Bombardier-Alstom liable for $1.5 million in penalties

Bombardier-Alsom is months late delivering the first of the 470 new cars it is building for Montreal's metro system - but the transit corporation has decided not to impose any penalties for tardiness, at least not yet.

Under the terms of its contract with the STM, Bombardier-Alstom can be fined $10,000 a day for delays. That means nearly $1.5 million should be deducted from its bill.

However, the transit corporation has told La Presse that it is temporarily suspending the imposition of penalties in order to maintain harmonious relations with the company.

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  1. joeN posted on 08/27/2014 08:03 AM
    What is the point of having penalty payments if your letting the supplier off the hook?? This is so typical of management incompetence and another reason why we the taxpayers end up paying. Not only was the RFP flawed to favor Bombardier, now they get more breaks for not delivering per spec, per contract agreement.
    1. Richard posted on 08/27/2014 07:22 PM
      @joeN Why exactly was the RFP flawed to favour Bombardier?
      Funny how Americans say buy American and Canadians say buy from anybody else
  2. ssm posted on 08/27/2014 12:29 PM
    Who is surprised by any of this? .... ANY of this......ANYone??
    1. Paul posted on 08/27/2014 03:03 PM
      @ssm This is outrageous!
      How about maintaining harmonious relations with your clients!
      This is our tax money you are giving away!
      Why does the STM require so many high paid executives to make such horrendous decisions?
  3. Anthony posted on 08/27/2014 03:33 PM
    Don't worry Bombardier won't have to pay... WE WILL January annual hike increase is coming.
    1. chuck posted on 08/28/2014 06:17 PM
      @Anthony of course...this is how business is conducted in quebec....the little favorite will be protected regardless of how incompetent they are. Little wonder quebeckers get the shaft time and time again. So watch the business news for a big loan heading to bombardeer.
  4. Paul posted on 08/27/2014 04:04 PM
    Isn't the STM rewarding failure here?
  5. Richard posted on 08/27/2014 07:20 PM
    The fact that the city is not going to enforce penalties tells me that there is more than what meets the eye here.

    IIRC the contract was held up and delayed in court because some companies wanted to have the right to bid even though they has steel wheels. This could have delayed production

    Without the contract in hand we don't have all the facts.

    But the media never lets facts get in the way of a good Canadian company bashing
    1. GT posted on 08/27/2014 11:00 PM
      @Richard Is it coffee break at your bombardier office? The great defender of a company that is rapidly sinking. The new plane can't fly andt they can't seem to deliver on their trains. Maybe they should have stuck with the recreational products.
  6. Daemoncan posted on 09/02/2014 03:43 PM
    Perhaps some of those generous raises for executives should be clawed back?
    They were the ones who signed off on the contract with a supplier who can't deliver.
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