B.C. Ends Deal With Contractor on George Massey Tunnel Replacement

Olivia Singh

6/16/20262 min read

The B.C. government is terminating its agreement with the consortium selected to replace the aging George Massey Tunnel beneath the Fraser River, though officials say the $4.15-billion project remains on track.

The Ministry of Transportation said Monday that the province and Cross Fraser Partnership were unable to agree on commercial terms for the final construction of the proposed eight-lane tunnel connecting Richmond and Delta.

The province had been working with the consortium under a design and early works agreement since September 2024. While the ministry said significant design progress had been made, the government is now exercising a pre-existing option to terminate the arrangement.

Project Returning to Competitive Procurement

Transportation Minister Mike Farnworth said the province received good value from the contractor and made steady progress on the tunnel’s design.

However, he said returning the remaining work to a competitive process would help secure the best value for taxpayers.

The province plans to divide the remaining work into several contract packages rather than awarding it as one large design-build project. Officials say the revised approach will allow more qualified firms to bid on parts of the work and could create additional opportunities for local contractors.

Farnworth said industry discussions indicated strong interest in competing for work on the project and that current market conditions may allow the province to attract more bidders.

Consortium Included Three Major Construction Companies

Cross Fraser Partnership is made up of Bouygues Construction Canada, Fomento de Construcciones y Contratas Canada and Pomerleau B.C., according to the consortium’s LinkedIn page.

Representatives of the companies did not immediately respond to requests for comment.

The tunnel project first went to market in 2023 as a single, large progressive design-build procurement. The province says breaking the work into multiple packages better reflects current market conditions while allowing construction to continue moving forward.

Early Work Will Continue

Early construction began in January and includes tree clearing and utility relocations.

The ministry said that work will continue while the province conducts procurement for future phases. As an initial step, the government plans to issue requests aimed at identifying qualified bidders for key portions of the project.

The B.C. Environmental Assessment Office is expected to finish reviewing the proposed tunnel before the end of the year.

Major construction is scheduled to begin in 2027.

New Tunnel Still Targeted for 2030

The province announced in August 2021 that the existing George Massey Tunnel would be replaced with a modern eight-lane crossing.

Despite the end of the agreement with Cross Fraser Partnership, the government says the project’s overall timeline has not changed.

The new tunnel is still expected to open in 2030.

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