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THEBACHA/FORT SMITH
A Fort Smith contractor is crying foul over a $23-million construction job taking place at the town's health centre.

A Fort Smith contractor feels shafted by a company which was awarded a $23-million contract to renovate the Fort Smith Health Centre, pictured here inside the west wing. - photo courtesy of Department of Public Works and Services

The major multi-year contract was awarded to Fort Smith's CAB Construction Ltd. in a negotiated contract with the GNWT in 2010, with aims to maximize local involvement and apprenticeship opportunities.

"They were really bragging themselves up about how they're using the local contractors. But at this point, nothing is farther from the truth," said Alden Vogt, owner of competitor Fort Smith Construction. He alleges that the company is sourcing materials from the south and not working with local contractors.

"It's not just myself. There's several other contractors that feel the same way and I'm just the only one coming forward," he said.

Maurice Evans, regional superintendent of the Department of Public Works and Services, said the department has not received any formal complaints from any of the town's contractors.

Under the negotiated contract policy, CAB is required to file reports to ensure that it is engaging as many Northern contractors as possible, in accordance with the business incentive policy, which gives Northern businesses first preferences, Evans said.

"So as long as they're ready, willing and able, then they'll be called upon," he said. "All indications are that CAB has lived up to the expectations of the negotiated contract to develop not only his company, but provide other local opportunities and employment."

According to the department's records, there is anywhere between 53 and 80 local workers on the site at any given time, in addition to nine Northern workers, and at times 15 workers from the south -- mostly with special expertise.

As far as the goods and services spending on the health centre project, local contractors and vendors make up about 23 per cent, Northern contractors and vendors 45.5 per cent, and total southern contractors 23.8 per cent.

"By and far the vast majority of this work is being undertaken by either local or Northern vendors," Evans said.

"Our view is that the project's moving along and at the end of the day, the client and the community is going to be very happy with the project that is there."

CAB, the largest construction company in Fort Smith, was awarded the negotiated contract because it had "considerable support from the community," Evans said, including letters of support from the Town of Fort Smith, the Metis, and a number of local companies -- including Fort Smith Construction.

Craig Browne, owner of CAB Construction, said this was the first he had heard of allegations that he is not involving local contractors, and that he was "very disappointed."

"I've given everybody many opportunities to work -- I mean, some of them, it's way over their capacity, this isn't just a local house or anything -- but I've helped them.

"I'm a local contractor myself, I'm based in Fort Smith, my head office is in Fort Smith -- I mean, it builds up the local capacity to hire local companies."

Browne added that with CAB tied up with the health centre, there is plenty of work in town for the other construction companies to bid on.

Fort Smith Construction is bidding on other projects in town, Vogt said, and is only speaking out about the health centre renovations so that other upcoming projects are put to tender and not negotiated.

"We could have handled that job at the health centre," he said, adding if his company is to secure an equally major contract, he would not subcontract CAB.

"I would give them the same courtesy that he gave me, which is nothing," he said.

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