CaDCR staff writer
Duron Ontario Ltd., a Mississauga-based general contractor, could face a five-year ban from bidding on City of Toronto contracts after being accused of overbilling on refurbishment work for municipal buildings. The city’s general government committee approved a four-month extension to the company’s current 6-month suspension this week, to continue investigating the overbilling claims. Depending on the investigation’s outcome, the penalty could face a five-year ban.
Duron’s legal team, led by lawyer Sabrina Waraich and Jonathan Frastaglio of Sutherland Law, appeared before the committee to oppose the extension. Waraich argued the prolonged suspension would cause “irreparable harm” to the company, which could lead to the loss of jobs for hundreds of employees who were not involved in the alleged overbilling.
“Any further suspension would punish Duron as a company, as well as individual employees and their families,” Waraich said. “The survival of the company and the jobs of hundreds of employees are at stake.”
The investigation began in September 2023 after city staff raised concerns about discrepancies in the cost of Duron’s work. An audit by the city and KPMG uncovered evidence suggesting the company had overbilled.
Frastaglio said the overbilling was the result of actions by a few rogue employees, and the company has taken full responsibility. “Duron is ashamed of what happened because it is not a reflection of the company’s practices or culture over the last 60 years of conducting business in this province,” he said.
Frastaglio added that Duron has fired the employees involved and implemented new policies to prevent similar issues in the future. The company has also offered to repay the overbilled amount, which Frastaglio said is less than 1% of the $1.5-million contract under investigation.
The city first flagged the overbilling issue in August 2022, leading to the audit. Based on the findings, city staff proposed a five-year suspension for the contractor. Duron requested more time to prepare a response, and the committee approved a four-month extension to allow for further review, with a decision expected in Q1 2025.
Duron is already serving a 6-month suspension imposed in June for violating the City’s Supplier Code of Conduct.
Geneviève Sharkey, the city’s chief procurement officer, said in a report that the city is committed to “accountability and the integrity of public funds” and that the suspension extension reflects its dedication to fair and responsible procurement practices.
Duron has worked on several high-profile government projects in Toronto, including renovations at Union Station.
