Bank signs performance bond for Cambridge Memorial Hospital construction
After being given 120 days to act, BMO brought a receivership application before the courts
Patrick Gaskin, the CEO of Cambridge Memorial Hospital, says he's "cautiously optimistic" about a new performance bond that was signed between the lender, Bank of Montreal and contractor Bondfield Construction, to get a new patient care wing completed.
Two weeks ago, Gaskin wrote an open letter to the community to express his frustration and disappointment over the now two-year construction delay.
The hospital issued a "notice of default" saying it would terminate the contract if the builders and lenders didn't fix the problem in the next 120 days. The notice expired on Wednesday, Dec. 12.
Thursday, Dec. 6, Gaskin says the lender—the Bank of Montreal, which had exclusive rights to take action—"took action by bringing a receivership application before the courts."
He says a judge has appointed a receiver to manage the affairs and call on a performance bond.
"It's essentially an insurance policy... it guarantees the completion of the project," Gaskin said.
He said the hospital, bank and construction company will now set up a series of discussions to determine when the project can be completed.
Gaskin said a new timeline will also be announced to the community once they "iron out" the details.
"We're cautiously optimistic as we move forward," he said. "We look forward to working with everyone as we move forward to get the project done."