Toronto Countersues Builders for $8.3 Million Over St. Lawrence Market Delays
The City of Toronto has launched a countersuit seeking $8.3 million from the builders of the new St. Lawrence Market north building, alleging significant delays and cost overruns that plagued the high-profile construction project. This legal action comes in response to a lawsuit filed by the builders, who are demanding $81.5 million from the city.
Years of Delays and Ballooning Budgets
The sleek glass structure on Front Street, which replaced a much smaller building, was originally approved by City Council back in 2002 but faced numerous setbacks before construction even began. Demolition of the old north building started in 2016, with construction on the new facility commencing in 2019 with an expected completion timeline of two-and-a-half years.
Instead, the project took approximately three years longer than planned, with the building largely completed by November 30, 2024. During this extended timeline, the budget swelled dramatically from $91.5 million in February 2018 to $128 million by 2024, representing a nearly $40 million increase.
Allegations of Faulty Planning and Scheduling Issues
In legal documents, the city alleges that the joint venture between Atlas Corp. and Buttcon Limited (referred to as BAJV) presented a construction schedule in late June 2019 that contained "inconsistent and faulty logic connecting some activities." When city bureaucrats requested corrections to these deficiencies, the builders allegedly failed to adhere to the revised schedule, causing work to fall behind.
The situation became so problematic that City Hall had to hire its own scheduling expert to get construction back on track, according to the city's claims. The city also alleges that BAJV "clashed with significant subcontractors," including firing the structural steel group in August 2022 after it fell nine months behind schedule.
Multiple Legal Claims and Financial Impacts
Beyond the countersuit against BAJV, the city faces additional financial claims from Adamson Associates Architects, the firm that designed the building and served as contract administrator. The architects spent more than three years beyond what was expected on the project due to the delays and are seeking additional compensation.
The city claims it is entitled to $1,500 for each day of the project's delay, plus costs related to operating St. Lawrence's weekend farmers market and antique market on the Esplanade for three years longer than anticipated. These extended operations represent significant unplanned expenses for municipal coffers.
Confidential Committee Review and Historical Context
Toronto's general government committee will review a report on the matter on Monday, which includes confidential legal advice about the ongoing litigation. A City Hall representative confirmed the points made in the committee report but declined further comment with the matter before the courts.
The St. Lawrence Market complex has been a Toronto landmark for more than 200 years, with the city noting that while it represents valuable historical significance, the old north building was underutilized. The new structure spans 120,000 square feet and features a five-storey atrium with 250 underground parking spaces, representing a substantial upgrade to the historic market district.
