A forestry company working on the late and over-budget West Kelowna City Hall project has filed a civil suit, claiming it is owed hundreds of thousands of dollars.
Seagate Ma*s Timber, a company that purchases, prefabricates and installs ma*s timber, filed a notice of civil suit Friday, claiming that Stuart Olson Construction Ltd. had not paid for work done on the City of West Kelowna project.
He is seeking payment from Stuart Olson and has claimed a builder’s lien for that amount on the city hall project.
In a description of how the deficit occurred, Seagate explains that Stuart Olson Construction entered into a fixed-price contract with the city on August 4, 2021 for the construction of City Hall.
On January 17, 2022, Seagate subsequently entered into a contract with Stuart Olson for the supply of labor, materials and equipment related to the work to be performed.
Before any modification to the work, the subcontracting contract had a total value of $430,150.00, taxes included. According to the complaint, the company requested that the subcontract be certified, but did not get a response.
Seagate claims it delivered the work “promptly and professionally,” but Seagate claims Stuart Olson refused or neglected to pay for the work performed.
Four invoices were submitted, no payments were made, and ultimately the outstanding debt was $697,979.01.
In turn, Seagate collectively claimed a lien on title to the land in the sum of $697,979.01 for the first lien and second lien.
None of the allegations in the lawsuit were argued in court.
Stuart Olson Construction and the City of West Kelowna have 21 days from the date the lawsuit is filed to file their responses in court.
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PKBNEWS contacted Stuart Olson Construction.
In a report to council, city chief administrative officer Paul Gipps said everything from poor soil and air quality to various issues with the trades involved have driven up the price of the proposed City Hall to $22.4 million, a 24 percent increase from $18 million. projected in 2021.
“Some of the main issues encountered during construction were increased costs compared to the pre-construction budget. This was exasperated (sic) by the trades not holding or setting prices at the time of tender,” Gipps said.
“This is an unprecedented practice caused by market volatility.”
Gipps also wrote that BC Hydro’s design and construction delays have been one of the “biggest risks to the project’s schedule and cost.”
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