YHC-contractor standoff lands in court
The Yukon Housing Corp. seems to be at a standoff with the constructor of the single-parent housing complex in Riverdale over the last $85,000 owed on the project.
Photo by Vince Fedoroff
SUBJECT OF DISPUTE – The constructor of the single-parent housing complex (above) on Nisutlin Drive in Riverdale says it has repaired the deficiencies, but still hasn’t received the payment it’s owed from the Yukon Housing Corp.
The Yukon Housing Corp. seems to be at a standoff with the constructor of the single-parent housing complex in Riverdale over the last $85,000 owed on the project.
NGC Building filed documents with the Yukon Supreme Court last week asking the court to either appoint a mediator to settle the dispute, or simply order the government to pay the outstanding balance on the construction bill.
According to the company’s lawsuit, the four buildings were completed last fall and the housing corporation issued a certificate of substantial performance last Oct. 10.
An inspection identified some “deficiencies” in the work, and the housing corporation held back $85,000 until those issues were fixed.
NGC claims it has “completed substantially all of the work identified as deficiencies,” but the government still hasn’t paid the outstanding balance.
Although there are no details in the court file about what was not completed to the housing corporation’s satisfaction, a person who is familiar with the buildings told the Star there are a number of problems.
According to the source, the water pressure was “a nightmare” for the first couple of months, and although it has been fixed, “the water pressure in many units is still terrible.”
The heating systems under the kitchen sinks were so hot they started melting the cabinets, presenting a safety risk to babies and toddlers. They have since been disconnected but not fixed, the person said.
Some units’ cabinets and countertops cracked within months of tenants moving in, and paint jobs were not complete, the person said.
Other issues that have been dealt with included doors which did not fit properly and could not be locked for the first couple of months.
The person asked not to be named because they were not authorized to speak about the project.
All of those issues – with the exception of the water pressure which is likely associated with the city’s infrastructure – are “totally standard with the breaking in of a new building,” Doug Gilday said on behalf of the construction company.
One heating system did malfunction, and was disconnected while a replacement was ordered, he said.
When tenants moved in, “we were not satisfied with the paint job, and we went in and fixed it,” Gilday noted. The same goes for the cracked cabinets and countertops.
“As buildings adjust to being newly placed, there is some movement,” he said. “It’s standard practice to be expected to go in and deal with that once everything is settled.”
Speaking to the Star last week, housing corporation spokesperson Nathalie Ouellett said, “There are deficiencies, but it’s just standard stuff,” such as issues with the roof.
She did not have any details about what was wrong with the roof, but said contractors had been working to fix it.
“It’s not uncommon,” Gilday said. “It’s a $6-million job, there’s 32 units. It was a big project.”
“It is standard that there are deficiencies when there is a new building,” Ouellett said, noting there is a two-year warranty on the work.
But according to the court documents, the housing corporation is not allowing NGC to come into the building and fix the remaining problems.
“I do know that we are trying to get these issues addressed with as little disruption (to the tenants) as possible,” Ouellett said. “So that might be where that’s coming from.”
“We were active in cleaning up details at the end of the project, and now we’re at the point where we’re at a bit of a standoff,” Gilday said last week.
By Monday morning, the housing corporation was refusing to comment on the entire matter.
“It has gone the legal route and we’re not in a position to comment,” said corporation spokesperson Chris Scherbarth.

Melba Disco Dancing Queen
Jul 27, 2011 at 5:46 pm
I have to say, this came in much lower than I recall the estimates being way back. I thought they were spending 12 million or 14 million for these 32 units? My memory could be failing me here but that was my recollection from way back when the gov’t first started talking about the project.
I don’t have a calculator handy but these units cost about $188,000 each if this company was the only contractor working there. (6mil/32) That’s not too bad.