Graham Construction was removed as the general contractor on the project in September 2018 (Photo: Glory Przekop)

By Shaun Penner

Hospital

Close to $10 million ordered to be paid to unpaid hospital subcontractors

Jul 18, 2019 | 6:24 PM

The Court of Queen’s Bench in Edmonton today ordered another payment of just under $10 million be paid to various sub-contractors in the case of the unfinished Grande Prairie hospital.

This is the second installment of payments from the court-held fund. The first came back on May 17, when the court ordered that $13 million be paid. That leaves approximately $7 million remaining to paid from the fund, which the provincial government fed into on February 21 of this year.

This case centres around the 26 subcontractors that are claiming they are owed a total of $60 million after Graham Construction, the general contractor on the project, lost it’s contract with the government back in September and suspended all subcontractors upon losing the contract. They then terminated all contracts just over a month later.

The decision states that the court requested Graham on September 19 to disclose the amount it owed to its sub-contractors. They claimed they owed just under $5.8 million, the largest of those being to Schendel Mechanical Contracting.

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Schendel has since filed for bankruptcy. They claim they were owed upwards of $26 million.

Clark Builders has since taken over the contract on the hospital. No timeline of when work will be finished, or how much is in fact left, has been announced.

Construction on the hospital began back in 2011.