As reported on CTV News, a local contractor has accused the provincial government of owing them $26 million for work done on the Grande Prairie Regional Hospital.

Schendel Construction has worked on the project for almost six years.

Last fall, it unsuccessfully bid to work on the hospital again after the Alberta government ended its contract with the project’s manager, Graham Construction.

Schendel Construction says it is owed for three years’ worth of work and materials, costs it covered with loans.

Simone Schendel-Reese, CEO of Schendel Mechanical Contracting, said the company has never found itself in a situation like this.

“In fact, we have been profitable for 35 out of 37 years and this—this is costing our company,” Schendel-Reese said.

Schendel Construction is one of 26 contractors that worked under Graham that say they are owed a total of $60 million by Alberta.

According to Schendel, the government has paid 50 per cent of the total bills to the court system, leaving Schendel and the other contractors to fight for what they believe they are owed.

Schendel Construction says it has been able to stay in business through other projects, but that it has been forced to lay off more than 100 employees and enforce pay cuts.

Watch the news video and keep reading on CTV News

 

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