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Concerns with NNI
Contractors raise concerns with how NNI is evaluating contracts

Kevin Allerston
Northern News Services
Published Saturday, April 30, 2011

NWT/NUNAVUT

The Nunavut and NWT Construction Association (NNWTCA) is saying it has been hearing complaints regarding the way Nunavummi Nangminiqaqtunik Ikajuuti (NNI) is evaluating contract payments.

 NNSL photo/graphic

Phil Moon Son is the executive director of the Nunavut and NWT Construction Association. He said the association has been hearing concerns from Nunavut contractors about the way Nunavummi Nangminiqaqtunik Ikajuuti is evaluating payments on contracts. - Kevin Allerston/NNSL photo

According to Phil Moon Son, executive director of the NNWTCA, most of the issues they have been hearing have centred around three main areas: denial of holdback payments - payments that are withheld until satisfactory completion of a project; what constitutes substantial completion of a project the issue of damaged or missing materials on labour only contracts.

Moon Son said to some contractors it seems NNI is changing the rules in the middle of the game.

"So, for example a contractor may be doing work and thinking they have made enough progress to receive final payment for it, and then find out that they haven't done enough work to receive the payment, when in past years the work they've done would have been enough," said Moon Son. "These hold backs can be as much as a couple hundred thousand dollars, so it is really affecting some of the smaller contractors."

He said he has heard from 10 contractors - most of whom are small businesses - who have been vocal with their complaints.

"I don't really want to say who they are because I don't want to single out any particular contractors. We want to be a voice of strength for members and that works better if we speak with one voice," said Moon Son.

Ron Dewar, the NNI secretariat's executive coordinator, said that he has heard of some concerns relating to hold back payments, but said it wouldn't be appropriate for him to speak about them.

"Well, we aren't privy to all the information and discussions held between contractors and contract authorities, so it really wouldn't be appropriate for me to speak to the concerns," said Dewar. He said these are matters that should be discussed between the contractor and their contract authority.

"I can say that NNI policy hasn't changed since 2006, though we are looking at some changes coming up, just to clarify our definitions and make it easier for people to understand what NNI does," said Dewar.

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