New contractor hired to resume construction of Pefferlaw Fire Hall

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The Town has taken the next step towards the resumption of construction of the Pefferlaw Fire Hall. Having terminated its contract with BECC in April, the Town secured the site and began assessing the project’s present status in order to establish a go-forward construction schedule. Recently, the Town retained Pearson Consulting and together they engaged in an expedited process to retain a new contractor, resulting in the retention of Silver Birch Contracting Ltd.

On July 15, 2020, after a closed session meeting with its lawyers to consider this matter, Town Council delegated authority to the Town CAO and Town Treasurer to enter into a construction management contract for the completion of construction of the Pefferlaw Fire Hall with Silver Birch Contracting Ltd. under the following parameters:

  • Estimated cost of the work $2.613 million + 1.76%(non-rebate tax)
  • Construction management fee $183,000 (7% of the Cost of Work) + 1.76%(non-rebate tax)
  • Anticipated start of construction on or before Aug. 4, 2020.
  • Anticipated substantial performance Dec. 31, 2020.

The Town has started litigation against both BECC and Echelon Insurance, the issuer of a performance bond in favour of the Town in respect of this construction project. In its statement of claim, the Town is claiming its cost overruns and delay costs from BECC, and seeking court orders that BECC or Echelon pay such damages to the Town. To date, neither BECC nor Echelon Insurance have delivered statements of defence to the Town’s statement of claim but it is expected that both parties will be defending the action brought against them. Town Council has instructed its lawyers to provide regular in-camera updates of the litigation so Council can monitor the litigation and provide strategies for advancing that litigation to a possible settlement or trial.

This project is a priority for Town Council and staff, who remain committed to ensuring that it is completed. Further updates regarding the progress of the construction will be forthcoming as this project advances.

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