SNC-Lavalin suing MUHC for $330 million over superhospital contract

Montrealengineering giant SNC-Lavalinis suing the McGillUniversity Health Centre for $330 million over the contract to build the new McGill superhospital, alleging last minute changes to the contract significantly boosted construction costs.

SNC launched the legal action along with its consortium partner inthe public-private-partnership deal to build the hospital,Innisfree UK.

In a statement released Friday morning, SNC alleges that theQuebec government and the MUHCsignificantly changed specifications and surface area requirements forthe new hospital after the contract was signed and construction was underway.

The company says thatas a result,thebuilding is larger than originally planned and cost more money $330 million more.

Theconsortium said it tried to negotiate, but that didn't work.

Health MinisterGatanBarrette called the lawsuit a tactic by SNC to get more money.He saidthe government will pay foranyreasonable overruns, but not more.

The initial contract is already the subject of a criminal investigation.

Quebec Crown prosecutors allege former SNC executives paid a $22.5 million bribe to the former CEO of the MUHC Arthur Porter in exchange for obtaining the $1.4 billion contract.