Thursday, April 18, 2024 
Thursday, April 18, 2024
August 3, 2018
The Calgary-based construction firm slammed by the Alberta government for delays on the $763-million Grande Prairie hospital said the province is shooting the messenger and was well aware of project details.
The government’s stance, which led to a notice of default Monday, is “rife with errors and misstatements,” said a Wednesday news release from Graham Construction and Engineering.
The company has dealt with continual design changes, scope increases and delays outside of its control since the contract was inked in 2011, the release said.
On Monday, Infrastructure Minister Sandra Jansen spelled out an Aug. 22 deadline for the firm to submit a plan to get the hospital project back on track, or risk terminating the contract.
“This is a very unusual move that we’ve had to take,” she told reporters Thursday, adding the tone of Graham Construction’s response is unfortunate.
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The firm, working toward a completion date in early 2019, asked the province for $120 million extra “without any documentation explaining the request,” Jansen said. That’s on top of the $510-million contract that makes up the bulk of the project cost.
But Graham Construction denied that, arguing it advised the government in late 2016 that the cost of the design was $583 million.
“It is false Graham requested an additional $120 million to add to the budget,” the release said. “Monthly update reports were provided to Alberta Infrastructure (AI) since the start which included cost and schedule updates and repeatedly alerted AI of a forecasted $70 million to $85 million shortfall.”
Recently the company provided the province, at its request, with a projected cost to complete the hospital including a contingency amount of $35 million, the release said.
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