DEH CHO
The company behind the Mackenzie Valley Fibre Link project is embroiled in a legal dispute with its former sub-contractor but the project's predicament is not expected to cost taxpayers extra money.

Rohl workers bury fibre optic line at Fort Simpson. During the summer of 2015, Rohl Enterprises was responsible for laying down line for the Mackenzie Valley Fibre Link. - April Hudson/NNSL photo

Robert C. McLeod, the minister with lead responsibility on infrastructure, said on March 2 the project is expected to come in on time and on budget - at least on the GNWT's side - despite the fact Ledcor has fired its main sub-contractor on the line, Rohl Enterprises.

The firing preceded court claims between the two businesses, with Ledcor suing Rohl for breach of contract and Rohl counter-suing Ledcor.

The Mackenzie Valley Fibre Link aimed to run 1,154 kilometres of fibre optic cable from McGill Lake to Inuvik. The line was buried. McGill Lake is 90 kilometres south of Fort Simpson.

On Jan. 15, Ledcor division LTS Infrastructure Services filed a statement of claim against Rohl Enterprises alleging, among other things, negligence and breach of sub-contract.

A Ledcor representative was not available for comment at press time.

Ledcor's claim states that on July 22, LTS gave Rohl Enterprises written notice of being in default of the sub-contract. When the situation was not resolved, LTS notified Rohl that it was taking possession of Rohl's on-site equipment and would bring in others to complete the work, at Rohl's expense.

"LTS took possession of the site and is completing the subcontract work," the claim states.

In particular, LTS' statement of claim says the work Rohl Enterprises did "was performed in a substandard and defective manner, which rendered the (Mackenzie Valley Fibre Link) Project unsuitable for its intended purpose as a high-speed fibre optic telecommunications cable."

Document said there were defects related to damage and deterioration to exposed parts of the cable at water crossings, erosion to cable trenches and damages to property adjoining the project.

LTS is seeking general and special damages, including unspecified costs to cover inspection and investigation and repairing the line.

The claim prompted Rohl Enterprises to file a statement of defence, accompanied by a counter-claim, on Feb. 25. Those documents accuse Ledcor of bad-faith dealings and seek damages in excess of $12 million.

In the defence statement, Rohl Enterprises claims it held no responsibility for defects to the line, which were caused by flaws in the project's design.

The document says Ledcor was responsible for determining the techniques Rohl Enterprises would use to trench the line, as well as the shallowness of the trench, overland construction methods and construction drawings.

Ledcor was also responsible for staking out the route, marking the centre line with ribbons, flagging creeks and inspecting and testing each completed section of the line, according to the defence.

Rohl's counter-claim includes damages of $12.8 million, unspecified general and special damages and court costs.

Reached by e-mail, company president Jason Rohl said that amount is for non-payment of Rohl's invoices for the work it did.

"I will say that we feel very confident about our position given that our work was done in accordance with (LTS') design and specified installation methods, both of which were exclusively Ledcor's responsibility," Rohl wrote.

"Unfortunately, it has become apparent that Ledcor's design was flawed and now they are looking for someone to blame."

He added Ledcor's oversight of his company's work included taking digital photographs every 30 to 100 metres.

The conflict between LTS and Rohl Enterprises has been peppered by a slew of failed inspections from the Department of Lands, most commonly in the area of erosion.

Failed reports continued throughout and after Rohl's tenure as sub-contractor.

According to inspection reports filed on the Mackenzie Valley Land and Water Board online registry, there have been at least 11 inspection reports stating erosion concerns in the past year, the first such report stemming from a Feb. 2, 2015 inspection.

The conditions of erosion were marked as unacceptable on May 25, twice in July, three times in August and once in September.

Since the beginning of 2016, the erosion conditions were marked as unacceptable on Jan. 6, Feb. 1 and Feb. 10.

Aside from erosion one commonly cited concern in the reports was lack of maintenance of winter roads.

On Jan. 6, an inspection report states that remediation work conducted over the summer and fall as well as the approved remediation plan are being disregarded or not followed through.

Issues throughout the summer of 2015 included a May 25 inspection that stated about 95 per cent of the trench from Campbell Creek to the end of the fibre line was not fully covered, with the cable exposed in about 10 creek crossings.