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SOMBA K'E/YELLOWKNIFE - Kam Lake MLA Dave Ramsay wants to know whether the government will be safe if claims start flying from Deh Cho Bridge contractors.

In the legislative assembly last month, Ramsay asked if the territorial government had been named in any financial claims to date.

Work on a bridge pier from a temporary bridge in the Mackenzie River in September 2008. Kam Lake MLA Dave Ramsay wanted to know how the government was exposed should claims and lawsuits be filed by contractors and subcontractors working on the bridge. Transportation Minister Michael McLeod said the government had not been named in any claims. - NNSL file photo

"We have to make sure we know what the government's exposure is," he said. "What I'm hearing is there are some problems."

Transportation Minister Michael McLeod said the $165 million bridge across the Mackenzie River near Fort Providence is behind schedule, as crews are still working on piers on the southern side of the river. The minister said the government had not been named in any claim from a contractor, although he said there have been claims made between contractors and subcontractors.

"I should mention that as far as I am hearing, they are actually common on projects of this size and this nature," McLeod said.

The Deh Cho Bridge Corporation, which took on the project, contracted Atcon Construction to build the bridge. Dorothy Innes, manager of communications and public relations with the Atcon Group in Miramichi, N.B., said she did not have any information on claims filed with the project.

Andrew Gamble, project manager of the Deh Cho Bridge Corporation, said the contract between the corporation and Atcon Construction "explicitly forbids lawsuits."

"In the course of construction, there are always arguments about cost," said Gamble, but added any disagreement on costs would go through a negotiation or mediation process. If that failed, disputes would be resolved through binding arbitration

Gamble said he did not see how the government could be brought into a lawsuit.

"There is no relationship between Atcon and the government, so I don't see how they could get into a dispute," he said. "Any issues would be between the government and the (Deh Cho Bridge) corporation," and, he added, there are procedures to avoid litigation.

Gamble also said costs for the project will not be affected by steel and fuel costs, which are lower today than when Atcon was awarded the construction contract.

"Our prices were fixed at the time of the award," said Gamble. "They (the contractors) assume the risk on any price change."

McLeod said 80 per cent of the first year's work is done and he hoped crews could be ready and on schedule for next spring, when the north-side piers are set to be put in place.

"We're expecting them to play catch-up and have the pier beds mounted as the schedule calls for prior to pulling out the temporary bridge, which is scheduled to come out in March or April," the minister said.

Cost projections on the bridge were $55 million in 2003, but when updated in 2007, increased to $165 million.