Monday 30th September 2019
Following an article on Inframation on September 26, 2019, SNC-Lavalin wishes to correct some inaccurate information and provide some background:
- SNC-Lavalin announced on July 22 a new strategic direction, which included exiting the lump-sum turnkey (LSTK) contracting model to focus on applying our expertise through the high-performing contracting models and growth areas of its business.
- SNC-Lavalin has previously confirmed that we are pulling out of LSTK projects where already shortlisted, including the Lafontaine Tunnel. We’ve also been open that for such projects we will be offering to either bid if the contracting model changes to one with better risk profile than LSTK or being a subcontractor with limited risks to those leading the bid.
- The September 26, 2019 article in Inframation has incorrect information and has led to questions posed to SNC-Lavalin; while we’ve addressed this directly with Inframation and have agreed a correction to be published which we thank them for, we need our stakeholders to be aware of the facts.
- Our new strategic direction is well into the execution phase, we are completing those LSTK contracts already started and carefully managing the associated delivery and risks, and we have not taken any new work, and ceased all bidding, in these large construction scopes. We are now working closely with all our clients and are actively discussing how we can best apply our considerable engineering and project management expertise to such projects through other contracting models.