rbt
Senior Member
Metrolinx talks about the penalty they'll have to pay to Crosslinx (the contractor) if the vehicles are late. Is this normal for a customer to agree to pay the contractor they hired to build the project a penalty fee if part of the project isn't supplied to the contractor on time?
Kinda, yes.
Metrolinx is actually a subcontractor in this case too. More importantly, Metrolinx also will not take ownership of the line (or pay the invoice!) until the line is production ready. Crosslinx has carrying costs (due to delayed payment) and maintenance costs for the new infrastructure during that interim period.
In short, since Metrolinx wrote themselves in as a subcontractor, they have the normal penalties that any major subcontractor on the project has.
The maintenance part of the agreement is coming straight out of TTC fare revenues (plus some probably), and TTC certainly isn't paying operations costs for a line that isn't production ready.