Canadian Design and Construction Report staff writer
The Government of British Columbia has terminated its construction agreement with the Cross Fraser Partnership for the Fraser River Tunnel Project after the two sides failed to finalize commercial contract terms, prompting a major shift in how the $4.15 billion infrastructure project will be delivered.
The project, which will replace the aging George Massey Tunnel with a modern, toll-free, eight-lane immersed-tube tunnel beneath the Fraser River, will now be broken into multiple smaller procurement packages in an effort to increase competition and attract a broader range of contractors.
Officials say requests for qualifications will be issued first to identify eligible proponents for key phases of the tunnel project, with further bidding stages to follow.
“By design, our process has a pre-existing termination option in case we could not reach mutually acceptable terms,” Farnworth said. “Moving to a revised procurement model creates more opportunities for Canadian and local contractors to participate while ensuring this nation-building project is delivered in the most fiscally responsible way possible.”
Despite the change in contracting strategy, early construction activity will continue. Work already underway includes tree clearing, utility relocations, and preparation for a casting basin on Deas Island. Temporary infrastructure construction is also progressing, including jetties for material delivery, access roads, retaining walls, and a trestle bridge. The province estimates the early works phase is supporting approximately 200 jobs in 2026.
Design work, technical investigations, and utility coordination will continue as procurement is restructured. The province also expects the Environmental Assessment Office review to conclude before the end of 2026, with major construction still targeted to begin in 2027.
Since September 2024, the province and Cross Fraser Partnership had been working under a design and early works agreement to advance engineering, technical studies and preliminary construction activities while negotiating a final construction contract. While officials say significant design and early construction progress was achieved, the parties were unable to reach agreement on commercial terms for full project delivery.
As a result, the province has exercised a termination option embedded in the agreement, allowing it to reset the procurement process.
“We’ve received good value from the contractor and have made steady progress with the design, thanks to their work,” said Mike Farnworth, Minister of Transportation and Transit. “However, this project is critical to British Columbia’s future, and we are taking this back to a competitive process to seek the best possible value for taxpayers.”
Farnworth said the revised procurement approach is intended to reflect current market conditions and strengthen participation from Canadian and local firms. The province expects the new model to generate broader industry interest, following consultations with domestic and international contractors.
The project was originally approved in 2023 as a single, large progressive design-build procurement. Under the new strategy, the province will divide the remaining scope into several contracts, similar to approaches used on other major infrastructure programs such as the Surrey Langley SkyTrain expansion and the Highway 1 Corridor Improvement Program in the Fraser Valley.
Officials emphasized that discussions with the federal government remain ongoing regarding potential support for the project, which is seen as a key trade and transportation corridor linking British Columbia’s ports and industrial regions.
“The Fraser River tunnel project will benefit all of Canada by improving access to B.C.’s ports, ensuring smooth flow of goods into and out of the country,” Farnworth said. “We are having constructive conversations with our federal partners about this important infrastructure project, and how it is critical for building Canada and growing the economy.”
Once completed, the tunnel is expected to improve safety, reduce congestion, and enhance the movement of goods and people across the Fraser River corridor, supporting long-term economic growth and regional connectivity throughout the Lower Mainland.
Learn more about the project: https://www.highway99tunnel.ca/project-overview-frt/
