Infrastructure Minister Barry Petten says he agonized over the decision to cancel contracts for the renovation of the old CNA building in Stephenville Crossing and replacement of the school in Cartwright.
Government pulled the plug on the two projects this week, but says it remains committed to the work.
Minister Petten says given ongoing issues and cost overruns, it was the right thing to do.
“With the many issues…I started coming to the conclusion that we had a lot of concerns, cost overruns, and wondered if it was the best site. We were having issues with jobs as well, as Labrador creates a whole unique environment.”
Minister Petten makes it clear, “it had nothing to do with this contractor…I can to the conclusion there was no way forward.”
The Martin Gallant Building in Stephenville Crossing in 2023 (VOCM News)
JMJ Holdings was informed this week that the contracts were being cancelled.
The company says both projects “presented significant challenges,” including “issues that would have required costly remediation.” In the case of the Martin Gallant Building in Stephenville Crossing, the project was “only partially designed at the time of tender, and that partial design contained inaccuracies regarding the existing structure, and its capacity to support the proposed renovation.”
JMJ says it hopes to work constructively with government to “quickly negotiate a fair financial settlement.”
How much that will cost remains to be seen according to the minister.
“We haven’t estimated that yet,” says Minister Petten. “We don’t expect it to be exorbitant.” He says whatever the cost, it will be less than if the projects were able to continue as is.
“The two projects probably totaled close to $100 million.”
In the meantime, Petten say they remain committed to the projects and will have another look at ways to move forward.
The current Henry Gordon Academy (NLESD)
The Town of Cartwright says residents “deserve clear answers” regarding the decision that affects students, families, staff and the future of the community.
The town says students “deserve modern educational facilities” and the “community deserves transparency.”
Minister Petten says the cost of the work in Cartwight was starting to snowball for a variety of reasons, and they’ll be looking at other options, including a modular approach.
“You can make them as big or small as you want, and as time goes on…we’re at less than 50 children right now out there…I mean you can repurpose them for community centres or what have you.”
