Legal counsel retained by Van Horne Construction Ltd., the general contractor recently removed from the new Parry Sound JK-12 school construction project, says the company strongly disagrees with the Ontario Minister of Education’s decision to terminate the contract.
The company, which has been operating in the province since 1973, issued a statement through Leonard Finegold of Cambridge LLP on Jan. 16.
“This decision is unjustified, unsupported by the facts, and fundamentally unfair, given the extensive and well-documented governance and oversight failures by the Board already identified in the administration of this project,” reads the statement.
In a letter to parents sent out on Jan. 14, the Near North District School Board said the decision to terminate the contract was made after an extensive review, including formal notices of default and opportunity for the contractor to resolve outstanding concerns.
The termination notice referenced several concerns, including the absence of a reliable and regularly updated construction schedule; the performance of work in accordance with the contract documents; the prompt correction of defective work and deficiencies; and the registration of numerous construction liens against the project.
Board officials say they that determined continuing under the existing arrangement would place the project’s successful completion and timeline at risk.
“Van Horne categorically rejects any suggestion that our work, conduct, or capability warranted termination,” continues the statement. “We stand behind the quality of work completed to date and the professionalism of our project team.”
Finegold says Van Horne raised concerns early and repeatedly about issues beyond the contractor’s control, including permitting challenges, governance breakdowns, decision-making delays, and structural problems within the project’s oversight and approval process. He says these issues were well-documented and predated any claims now being made regarding contractor performance.
“As a result of the Province’s action, Van Horne will be pursuing legal remedies to protect the company’s reputation, its contractual rights, and the interests of its employees and partners. We will not allow more than five decades of trusted public service and construction excellence to be undermined by a decision that fails to reflect the full and accurate record of this project.”
The complete statement issued by Leonard Finegold of Cambridge LLP on behalf of Van Horne Construction can be found below.
