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Bias alleged in quashed tender
Town cancels Midnight Sun Complex project after notifying construction company it was lowest bidder

Stewart Burnett
Northern News Services
Thursday, August 17, 2017

INUVIK
A local business is upset with the town over a change in plans for work on the Midnight Sun Complex.

NNSL photograph

The Town of Inuvik cancelled its tender for work on the Midnight Sun Complex after notifying Beaufort Construction that it was the lowest bidder. The local construction company's president Max Mustafa is angred by the move. - Stewart Burnett/NNSL photo

The Town of Inuvik cancelled its tender for work on the complex's canopy and entrance way even though it had already notified Beaufort Construction it had the lowest bid for the contract at $197,000.

Beaufort received notification from the town in June but the approval of the project was still contingent on a council vote.

When it started becoming clear the town wanted to go in a different direction with the project in July, Beaufort Construction president Max Mustafa approached council upset by the change of plans.

"I feel like the Town of Inuvik doesn't want to give Beaufort the contract for some reason other than what you're explaining," he said to council. "I didn't want to say that but that's the way it seems."

At the Aug. 9 meeting, the town officially cancelled the tender after receiving legal input that it was within its rights to do so.

Grant Hood, senior administrative officer for the town, said the original tender was issued to address how snow builds up in front of the Midnight Sun Complex doors. It was only after the tender closed that the town realized it should also improve the stairs to the entrance, handicap ramp and more.

"We said really, we should have included everything in a bigger, enhanced project, that whole front area, because we also wanted to have an architect analyze the handicap ramp because it doesn't work well with the way the stairs are," said Hood.

He said the town did not have the budget to include the additional work so it cancelled the project altogether and will ask an architect to come up with a new design next year or at a later date.

A new design will cost about $5,000, which is about what the town paid for the previous design, said Hood.

However, Mustafa wonders if there is more to the town's decision than what's been made public, pointing specifically to the fact Mayor Jim McDonald had a financial interest in some of the work included in the tender.

McDonald Bros. Electric had submitted a quote for the electrical portion of work on the project.

"There's something that didn't smell right in that tender procedure," said Mustafa.

"I think there were some biased decisions. The reality of it is . as a politician or a mayor or councilman, you're put in that position for the best interest of the public and I don't think the best interest of the public was there. I think it was maybe the best interest of maybe some councilmen or the mayor."

The accusation comes even though McDonald had recused himself from all council discussions on the project due to a perceived conflict of interest.

McDonald said the contract was not a major loss for his company when reached for comment. He said the portion of the work he was seeking represented about 10 per cent of True North Contracting's losing bid on the canopy and entrance way work, which totalled around $200,000.

"(Mustafa) is entitled to his opinion but whether we got that bid of work, it wouldn't have had a big impact on the work we already have," said McDonald.

"I don't think there's any real basis to what he's insinuating or saying there. I think at this point it's sour grapes. I was not involved in the decision, nor did I participate in any of the debate or conversation leading to council's decision."

Hood said McDonald went beyond what's stipulated for conflict of interest concerns, leaving council chambers completely instead of remaining and staying silent.

"I can sympathize with them that they're upset because there's a project that maybe they anticipated but again we're not the first municipality or place that's cancelled a project because something's come up," said Hood.

"That's why we did our due diligence to make sure what we did was correct and we weren't liable for anything."

The town didn't take it lightly, he added.

"We didn't want to put Beaufort Construction in a position that was wrong," said Hood. "That's why we took our time. Also, the timing of council meetings didn't help either. We took our time, looked at it and made sure what we were doing was correct."

Nothing would prevent Beaufort from bidding on the revised project in the future, should the town issue a tender for it, he added.

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