Norcope Construction of Whitehorse officially filed its lawsuit against the territorial government in Yukon Supreme Court on Friday.

Norcope is also asking the court to order the government and Sidhu Trucking to immediately stop work on a $2-million contract which is in dispute.

Norcope maintains the contract should have been added as an extra to the $15.9-million contract Norcope was awarded in March for the installation of water, sewer and utility lines for the new Whistle Bend subdivision.

The suit claims the government failed to negotiate in good faith with Norcope to arrive at an agreeable price for the additional work.

The government, the claim points out, eventually decided to sole-source the work to Sidhu Trucking, and subsequently ordered Norcope to leave the area in question so crews for Sidhu could move in.

The parties met by telephone in the judge's chambers this morning to discuss how to proceed with the lawsuit and the request for the order to halt Sidhu Trucking until the matter is straightened out.

In an act of civil disobedience to protest the government's decision to give the work to Sidhu, Norcope drove several pieces of heavy equipment from the Whistle Bend site to the main administration building on June 8.

The equipment blocked access to normal parking around the Second Avenue building in front of the premier's office.

Three rock trucks remain parked in front of the premier's office.

In an interview on the day of the protest, Norcope owner Doug Gonder said at the very least, the government should have re-tendered the additional $2 million worth of work.

Government officials have refused to explain why a $2-million change order was required within days of the main contract being awarded. They maintain nobody can or will comment because the matter is now before the courts.

In a letter to the Star published June 10, Castle Rock Enterprises of Whitehorse, which was second in the bid process, suggested such a large change in the original scope of work should have prompted the whole job to be re-tendered.

In Norcope's court documents, the company points out it was awarded the main contract on March 28, with all the standard provisions regarding change orders and so forth.

In early April, the documents state, the government issued new drawings, effectively requiring an additional 260,000 cubic metres of material to be moved – equivalent to about 15,000 truck loads.

Norcope is arguing the change is beyond the 15 per cent margin that requires companies to perform the additional work for the same unit price included in the main contract.

The company also invested in additional equipment to do the extra work.

The court documents filed by Norcope's Vancouver lawyer state: "As a result of YTG's conduct, Norcope has suffered and continues to suffer irreparable harm to its business and has lost and continues to suffer damages including but not limited to loss of business reputation and good will and losses related to investing in the equipment described....

"YTG's action constitutes an unwarranted and flagrant disregard for Norcope's rights under the construction contract for which the plaintiff is entitled to an award of aggravated punitive and exemplary damages.”

In addition to damages, Norcope wants the additional work returned to the company, along with an order compelling government representatives to negotiate a fair price in good faith.

The Whistle Bend subdivision is expected to be the primary site of urban development in the city over the next 20 years, with the first lots scheduled to be ready next year.