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Iqaluit hospital renovations re-tendered Bonding company to find new contractor for project
Lyndsay Herman
Northern News Services
Published Monday, June 17, 2013
IQALUIT
A new general contractor is needed to take over renovations at Qikiqtani General Hospital in the territory's capital after the company in charge walked off the project last month.
Dowland Contracting Ltd. had been previously involved in the project through its joint venture with NCC Developments, titled NCC-Dowland. NCC-Dowland then partnered with Nunavut Construction Company to take on the project. However, debt pressure caused Dowland to walk off the project site May 8 and the company is now in receivership.
Now, the bonding company managing Dowland Contracting Ltd.'s and its affiliates' affairs is putting out the word that the project is being re-tendered.
Alvarez & Marsal Canada Inc., the appointed receiver and manager of Dowland Contracting Ltd., Dowland Industrial Works Ltd., and 6070 N.W.T. Ltd., is now managing Dowland's obligations under the contract and will be the companies looking for a new general contractor by re-tendering the project, said Ron Wassink, communications specialist for the department of health.
"The general contractor abandoned the site and is in receivership but the project continues under the direction of the bonding company," said Wassink. "The bonding company, it's expected they will re-tender the project and it's anticipated that a new general contractor will take over."
He added the construction materials purchased by Dowland prior to abandoning the site are still set to arrive throughout the summer season.
Wassink said it was too early to speculate what the re-tender may mean in terms of time delays and extra costs, if any.
The Government of Nunavut budgeted approximately $32 million to update the aging hospital wing and Dowland's contract amounted to just under $20 million.
Wassink confirmed hazardous waste removal from the site continued after Dowland walked off the site.
The department of health could not confirm if the new contract would have any requirements for Nunavummiut or Northern hires by press deadline.
While construction work may have been disrupted, hospital services have not but the location of some services have been relocated.
The hospital clinic was moved to an empty ward on the second floor, which had been included in the construction of the new wing in anticipation of future needs. As a result, the clinic did not displace other services by being relocated there.
The rest of the old wing contained administrative offices which have been relocated to available space in the hospital's new wing and elsewhere in Iqaluit.
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