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Contractor seeks $10 million from Deh Cho Bidge builder

Andrew Livingstone
Northern News Services
Published Friday, September 25, 2009

SOMBA K'E/YELLOWKNIFE - The main subcontractor on the Deh Cho Bridge project is seeking payment from ATCON Construction for almost $10 million, for work completed in June of this year.

On Aug. 4, Ruskin Construction, a British Columbia company, filed a claim of lien under the territorial Mechanics Lien Act in the amount of $9.9 million for foundation and steel work completed on the $165 million bridge project.

A lien, filed with the registrar of land titles at the Department of Justice, allows a company to secure the payment of a debt from the person or company contracting it to do the work.

Ruskin is seeking payment for "labour, materials, supervision, equipment, tools, vessels, expertise and supplies necessary from performance of all work related to the ... construction of the Deh Cho Bridge Corporation Ltd. bridge" along with applicable taxes and daily interest accumulated under the Bank of Canada prime business rate of 2.25 per cent, plus an additional 2.5 per cent.

The unpaid work, which started in 2008, was completed on June 18 of this year, according to the claim.

Calls to Joseph Hanna, a Ruskin representative named in the claim, and Earl Blacklock, spokesperson for the Department of Transportation, were not returned by press time. Calls to Andrew Gamble, project manager for the Deh Cho Bridge Corporation and Dan Hughes, spokesperson for ATCON, were also not returned by press time.

Glen Abernethy, MLA for Great Slave, said he was updated on the bridge project yesterday after hearing of the claim and said he was told the bridge corporation had paid ATCON for the work already completed.

"Bottom line is, the government, rather the Deh Cho Bridge Corporation, has paid ATCON up to date and they haven't paid their subcontractors," Abernethy said, adding he wasn't sure how much it was ATCON had been paid. "Ruskin had to do something to try and get their money."

At this point, Abernethy said he is "optimistic" ATCON will pay Ruskin what they owe.

"I hope ATCON meets their commitments, I think that would be reasonable," he said. "If the work was done and it was done to satisfaction ... they should pay what they owe."

The bridge project has seen its share of problems since construction began in 2008. A construction delay in June was caused by a contract dispute between ATCON and the bridge corporation, which resulted in the concrete and pier work shifting from ATCON's control to the corporation's. Because of this dispute, Ruskin now works directly for the corporation.

Rowe's Construction, the lone Northern subcontractor for bridge work, was removed from the project. Details of why Rowe was removed were not revealed. The bridge also had design flaws and was subject to a review. It was determined some small details would change. Along with the proposed changes and work stoppage, the completion of the bridge has been delayed until the fall of 2011. The delay will cost $5.5-million from a dwindling $10-million contingency fund set up to deal with unforeseen expenses.

ATCON, a New Brunswick-based company, has been publicly criticized over a $50-million bailout it received from the N.B. government.

On Wednesday, New Brunswick Premier Shawn Graham, in a Moncton Times & Transcript newspaper article, admitted ATCON is not without its financial challenges, but said the company is restructuring and is selling some of its assets to generate cash.

According to Graham, the company is owed a large amount of money from an outside firm, which has caused some undue hardships.

ATCON is currently being sued by a Manitoba-based company for a reported $1 million in unpaid bills for work completed on an Alberta oilsands project. ATCON also faces a lawsuit from an Alberta company seeking more than $600,000 in outstanding bills.

Kam Lake MLA Dave Ramsay said the continued problems plaguing the project are frightening on a number of levels, particularly the chance the GNWT could be on the hook.

"If something happened to ATCON, the GNWT is obviously backstopping this project and the money would obviously be coming from us," Ramsay said. "We're exposed at more levels than I ever thought we'd possibly be. It's probably not going to be the only (claim) that will be placed on the project."

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