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Construction Association joins calls for hospital contractors to be paid in full

The President of the Alberta Construction Association has sent a letter to the NDP demanding the subcontractors who did work on the Grande Prairie Regional Hospital to be paid in full.

In a letter sent to former Infrastructure Minister Sandra Jansen, ACA Chairman Ian Reid says he believes the government risks losing much of the good work they’ve done on other contracts due to the circumstances of this one project.

“We understand that more than two dozen contractors are seeking redress in the tens of millions of dollars on outstanding payments from the Grande Prairie hospital project,” he says in the letter to Jansen. “Some of the affected contractors indicate that payment has been outstanding in excess of 300 days.”

The allegations first brought forward by Edmonton based firm Schendel Mechanical, who say they are owed nearly $26 million for what amounts to about three years of work and materials.

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King adds the situation is already critical for many subcontractors, and unless something is done soon, they run the risk of shutting up shop.

“The protracted payment period puts the financial survival and livelihood of many Albertans at risk, for circumstances that are beyond their control. Please resolve the outstanding payments on the Grande Prairie Hospital Project now.”

No timeline has been made public as to when the hospital is expected to open.

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