Province court-ordered to pay $13 million to hospital contractors
The "debt-clock" outside the Grande Prairie Regional Hospital. Photo: Michael Lumsden
The Alberta Court of Queen’s bench has ruled that nearly $13 million of $30 million of Court-held government funds should be released to contractors owed for their work at the Grande Prairie Regional Hospital.
In March, Edmonton-based Schendel Construction claimed it was owed more than $26 million for three years of contracted work. That work came to an end after original project manager Graham Construction was taken off the build in November 2018.
Ground broke on the project back in 2011 and it has since has been plagued with delays in construction and budgetary issues. No final timeline for the opening of the hospital has been set since Clark Builders was brought on to replace Graham Construction.
Former Alberta Party candidate Grant Berg, who set up a debt clock outside the new hospital during the election campaign, says the decision is not a total victory, but it’s a good start.
“It relieves a lot of pressure and hopefully it will allow the remaining guys, who aren’t bankrupt yet, to go forward and continue to do business while this is settled.”
The next hearing on the matter is set to be held in front of the Court of Queen’s Bench on July 11th.