Photo by Whitehorse Star
SUBJECT OF LITIGATION – Work proceeds May 20, 2014 on the Erik Nielsen Whitehorse International Airport ramp. Inset Doug Gondor
Photo by Whitehorse Star
SUBJECT OF LITIGATION – Work proceeds May 20, 2014 on the Erik Nielsen Whitehorse International Airport ramp. Inset Doug Gondor
The Yukon government is suing a Whitehorse construction company
The Yukon government is suing a Whitehorse construction company after it allegedly failed to address problems in the concrete apron panels it installed at the Whitehorse airport.
Now the government is seeking $3.7 million from construction company Norcope Enterprises for breaching its contract, and $1.78 million from Toronto-based Intact Insurance Company for a performance bond on that contract.
In total, the Yukon is asking for $5.48 million in compensation for the cracking and crumbling apron, the area where airplanes are parked, unloaded and refuelled.
Allegations in the government’s statement of claim, filed at the Yukon Supreme Court last Thursday, have yet to be proved in court.
According to court documents, the airport apron saga unfolded over the spring and summer of 2014.
Norcope was hired in March 2014 to replace concrete apron panels at the Erik Nielsen Whitehorse International Airport. Norcope began work under the $3.7-million contract in April 2014.
The government says it first raised concerns with Norcope about the quality of its concrete job in June.
In July of that year, the government says, it pointed out “major deficiencies” in Norcope’s work. Court documents say the concrete was cracking and spalling, the surface was finished poorly, and joint sealant had failed.
The government asked Norcope to redo the job, as per its contract.
On Aug. 13, the Yukon warned Norcope that if all the problems weren’t fixed, it would consider the company to have reneged on its contract obligations.
Norcope responded six days later, saying the company saw no issues in its work on the apron and wasn’t obligated to redo the job, according to the statement of claim.
On Aug. 21, the Yukon told Intact that Norcope had defaulted on its contract obligations and asked the insurer to step in.
The government says Intact had a number of options: it could compel Norcope to redo the job, or arrange for another contractor to repair the apron, or it could pay back the bond amount or the cost of finishing the repair work.
Intact too, failed to live up to its obligations, says the government.
The government is now looking to recoup the value of its contract with Norcope and its performance bond with Intact.
But Doug Gonder, CEO of Norcope, says this mess was created by the former Yukon Party government and consultants, and that once the Liberals get all the details, they’ll take an altogether different view of the matter.
“They built on ground that they knew was a failure and continued to build,” Gonder said of the former government.
His company stopped the job because of permafrost-related issues, he said, but the Yukon Party government and consultants pushed ahead with the project anyway.
In an interview early this afternoon, Gonder said the biggest problem with the job was that no work was done on the sub-base before the concrete panels were laid overtop.
The sub-base is the layer of material underneath the concrete that helps spread the weight of heavy loads.
“There’s failure all within that zone of the airport, and consultants and engineers should have examined the ground better,” he said.
“There was no geotechnical reports at all on the project.”
Gonder said he would happily fix the problems that should have been dealt with earlier, if the consultants or the government will pay for it.
“We’re quite confident that once everybody sits down, and the right parties are in place to examine the failures or whatever needs to be rectified there to make what’s there work, I think it will be a completely different circumstance,” said Gonder.
This isn’t the first time the Yukon government has taken legal action against Norcope.
In 2013, the two parties reached a private settlement after a dispute over water and sewer work in the Whistle Bend subdivision.
This is the second major lawsuit filed by the Yukon in the last month.
The government made a $39.5-million statement of claim against Corix Water Systems and Chubb Insurance Company of Canada on Feb. 17 over the faulty sewage treatment plant in Dawson City.
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Comments (7)
Up 5 Down 1
The airport should have insulation on Mar 4, 2017 at 9:15 am
put down and than gravel and then packing and pad.
Up 21 Down 3
Martin on Mar 3, 2017 at 5:16 pm
Why YTG has to rely on consultants?; Doesn't DPW-Hwys-DOT have many, many, many, many engineers on staff? What are they doing? Obviously, not their job. If they can't stop a project on time before anything worse (other than minor deficiencies) happen, they should be fired. SAD! Let's make the Yukon Great Again!
Up 24 Down 5
Nile on Mar 3, 2017 at 3:16 pm
@yukonmax - thanks to the union there are many bureaucrats that lie to whom ever is in power in order to further their own agendas. It doesn't matter who is in power. They have no political affiliations.
Up 26 Down 2
Hank on Mar 3, 2017 at 12:43 pm
Hopefully Sylver steps in and settles these lawsuits asap and informs the lawyers to do the same. The court has three to four year old cases that should be easy to solve, However, the lawyers are content to drag these processes out. They both get paid. The government has to look at these cases and ask "How much are we paying both lawyers if we lose + the court ordered settlement"
Because the gov lawyers already know they are in for a loss they are happy to see the process drawn out. No reason that some of these cases have been in court for 3+ years. Just lawyers padding their wallets on the public dime.
Up 58 Down 2
Not Surprised on Mar 2, 2017 at 9:45 am
The tenders put out by YG are horrible. Incorrect specs, incorrect scope of work, addendum after addendum to these tenders. Then comes the bidding, quotes are entertained by companies that have no business doing that type of work. We as a territory have become so dependent on the Government projects to keep businesses afloat that we think we are experts in everything. How many projects in this town run on time and on budget? Not many from what I can remember. Take the demolition of FH Collins for example: oops, we didn't know there was that much asbestos in there. Where is the accountability? We need to stop pretending that because it's the Yukon we can do things however we want. It's nice to see YG demand quality in work being done, they are responsible for our tax dollars, but the accountability needs to go both ways.
Up 41 Down 4
ken on Mar 2, 2017 at 9:10 am
Times are sure good for the lawyers in the Yukon huh.
Up 31 Down 7
YukonMax on Mar 2, 2017 at 8:45 am
Many YP lapdogs within the department(s) tried to shine above recommendations from the very expensive "consultants" they hired to begin with.