The Supreme Court of Nova Scotia has ruled that the municipal owners of the Rath Eastlink Community Centre in Truro, N.S., must pay the facility’s general contractor over $1 million along with more than a decade’s worth of interest. The dispute between the Municipality of Colchester and the Town of Truro with PCL Construction, based in Edmonton, dates back to 2014 over responsibility for project delays that prolonged the construction of the community sports complex.
PCL Construction was selected by the municipalities in 2009 to manage the project initially budgeted at $30 million. However, the cost escalated to over $41 million when the contract was finalized, eventually exceeding $48 million upon completion in 2013. The contractor claimed entitlement to additional fees due to project changes, while the municipalities alleged that delays were caused by the general contractor and its subcontractors.
In a recent ruling, Justice John Bodurtha highlighted the lack of construction experience within the project’s public steering committee. He noted that meeting minutes revealed PCL’s efforts to control costs, advise on tender processes to avoid delays, and warn about budget overruns. The judge awarded PCL an extra contractor’s fee of $1.15 million, specified staff costs post-contract extension in 2013, and an amount for an uncashed $120,000 check, in addition to accrued interest.
The municipalities’ counterclaims for damages cited project deficiencies, including non-compliant stairs in the arena and pool viewing area. Bodurtha inspected the facility, focusing on the stairs, following a lawsuit filed by a patron who fell while climbing them in 2018. The lawsuit was later withdrawn, and the judge found no evidence of building code violations that caused the fall. He awarded nominal damages to the municipal owners for installing handrails and cautionary signage on the stairs.
The Supreme Court’s decision coincides with Truro’s scrutiny of capital projects following cost overruns in recent recreation initiatives. Additionally, the municipalities must reach an operating agreement for the Rath Eastlink Community Centre, as the Municipality of Colchester terminated a contract with the Central Nova Scotia Civic Centre Society due to contractual disputes. The facility’s operations are expected to continue normally during a 90-day transition period without anticipated staff changes.