The $61.6-million Macassa Lodge Redevelopment project is facing a one-year delay and up to $1.5 million in additional construction costs after widespread slab on grade settlement was discovered at the site.
Construction on the 65,000-square-foot addition at 701 Upper Sherman Avenue, initially scheduled for completion in the fall of 2026, will now be delayed until the fall of 2027. In a memo dated June 11, 2026, City of Hamilton Director of Corporate Facilities and Energy Management Daniela Paraschiv disclosed that approximately 28,000 square feet of the building’s concrete slab has settled by half an inch to over three inches.
The City first became aware of the problem in December 2025 during routine structural inspections. Following technical reviews by three geotechnical consultants, the memo states the City has identified the primary causes.
“Key contributing factors for the settlement include water infiltration and saturation beneath portions of the slab, as well as areas of loose fill and soft subgrade conditions resulting in differential support beneath portions of the slab,” Paraschiv wrote.
To address the issue, the city is proceeding with the full removal and replacement of the existing slab, rebar, and affected subbase areas. The existing subbase will be tested to determine if it can be reused or if it also requires complete replacement.
“This option was determined to present the lowest long-term project risk, with structural performance and reliability of the building as top considerations,” Paraschiv wrote.
The corrective construction has a cost estimate of $1.2 million to $1.5 million. According to the memo, the total approved project budget is sufficient to absorb the anticipated additional costs. Contractual delay-related claims are also anticipated as part of the overall resolution process.
The memo states the City is currently investigating liability for the engineering and construction failures.
“The City project team is actively consulting with Legal Services and, where external responsibility is confirmed, the City will determine cost recovery options,” wrote Paraschiv. “In addition, the project team will document lessons learned and apply them to ensure high standards of accountability in the delivery of capital projects.”
Production Details
v. 1.0.0
Published: June 21, 2026
Last updated: June 21, 2026
Author: Joey Coleman
Update Record
v. 1.0.0 original version
We need to determine,
1. Who failed to prepare the area properly before the concrete was poured?
2. Who gave the order to pour the concrete on the ill prepared ground?
Once that is determined fire them.
One year and over a million dollars lost would bankrupt most companies.
Losses like these must be eliminated in the future, taxpayers are already at their breaking point.