Guy Quennevile
Northern News Services
Published Wednesday, January 23, 2008

YELLOWKNIFE - Some Yellowknife subcontractors have not been paid yet for the building housing Staples Business Depot.

Rick Holdings owns the 28,000-square foot building and attributes the long wait for payment to a delay in the invoicing process. The company says it cannot pay the general contractor, Edmonton-based Kor Alta, until the latter company sends Rick Holdings its final invoice.

Bob Fitzgerald, owner of Fitzgerald Carpeting, stands outside the newly erected Staples Business Depot, where Fitzgerald installed carpeting and tiles last November. Fitzgerald hasn't been paid the $67,000 he's owed by the contractor, Kor Alta, who in turn has not been paid by the property owner, Rick Holdings. Staples rents the building from Rick Holdings. - Guy Quenneville/NNSL photo

"The payment for Kor Alta is basically just sitting there, waiting for them. We're just figuring out final invoicing," said Tracy Heimbecker, general manager of Rick Holdings.

The Staples construction project encountered many delays related to bad weather and difficulties finding some sub-contractors for the project - delays which pushed back the invoicing process, added Heimbecker.

"The project was completed quite a bit later than we had anticipated," she said. "It's nothing horrendously serious for a construction project of this size."

Bob Fitzgerald, owner of Fitzgerald Carpeting, sent four of his employees to the lot from November to early December to install carpeting and ceramic tiles.

The carpeting provider's last day of work on-site was Dec. 5.

But Fitzgerald is still waiting for a payment of $67,000 from Kor Alta.

"I signed a contract with Kor Alta which said that Kor Alta will pay us no later than five days after the developer pays Kor Alta," said Fitzgerald.

While he said he is not pointing a finger at either Rick Holdings or Kor-Alta, and that such delays "are not unusual," Fitzgerald did put a mechanic's lien on the land and property last week, which renders building owners incapable of selling their property until the creditors (in this case, Fitzgerald Carpeting) are paid for their services.

In his 32 years in the business, Fitzgerald has only applied for a lien three times.

"I'm not really worried about getting paid," he said. "It's just an insurance policy to make sure we get paid."

But the delay could end up costing him if it continues to fester, added Fitzgerald.

"If 45 days passed and the dispute between Kor Alta and Rick Holdings was not resolved, then I would have to start litigation. And that's expensive."

At least one other sub-contractor is also waiting for payment.

Dale Christensen, general manager of Capital Transit Mix, which poured concrete for the sidewalks surrounding the site, said he has yet to receive the remaining 10 to 15 per cent of the amount owed to him by Kor Alta.

Ralph Corbett, general manager of Kor Alta, would not confirm Heimbecker's assertion that the matter is simply an invoicing delay, saying he had "no comment" on the matter.

Heimbecker said she hopes to receive the final invoice from Kor Alta sometime this week.