The construction manager of the Grande Prairie Regional Hospital has made the province’s deadline. Graham Construction had been issued a notice of default and was given 15 days to submit a plan for how it will get the project back on schedule and in line with its contract.
Press secretary for the Office of the Minister for Infrastructure Jennifer Burgess has confirmed Graham has submitted a mitigation plan to Alberta Infrastructure. She says it is now being reviewed.
When it issued the notice of default, the provincial government said the contractor had recently requested another $120 million to finish the project. An amended contract for $510 million was signed in December 2016, but costs have ballooned to at least $763 million.
Graham responded, saying the province has been aware of for years that the design for the hospital would cost more than its budget. It also blamed more than 600 change orders and 400 design clarifications in the last two years.
Infrastructure Minister Sandra Jansen has said that if Graham Construction doesn’t come up with a plan to get back within its contract, it would risk being fired. Ground broke on the new hospital in 2011.
