Village facing lawsuit
Yellowknife firm angry over Rowe contract
by Arthur Milnes
FORT SIMPSON (Mar 13/98) - A Yellowknife construction company is planning to sue the Village of Fort Simpson for more than $100,000 because the village chose a local firm to undertake a major construction project.
Clark Builders was the lowest bidder on a tender call for renovations to the village's recreation centre, according to village council. Their bid was approximately $15,000 cheaper than the locally based bid by Rowe's Construction.
Wishing to benefit local residents and provide spinoffs to the Fort Simpson economy, the village said it awarded the $1.3 million contract to Rowe's and work is now under way.
"I can advise you that our client's claim will be as advanced in the amount of $130,000," says a letter discussing a draft statement of claim sent to village representatives by Clark lawyer Michael Kirk. "This represents the profit margin that our client would have received from this particular project which is in line with the case law."
Village councillors simply reviewed the matter Monday night and said they felt there was nothing wrong with awarding a contract to a veteran local contractor.