Hamilton company looks for council support over stadium pay dispute

A local company wants Hamilton city council's support in its dispute over what it says are unpaid bills related to construction work at Tim Hortons Field stadium.

We're left wondering when our turn at the plate is.- Greg Crawford, Lancaster Group

The Lancaster Group, a 62-year-old Hamilton company that does heating, ventilation and air conditioning work, claims the Ontario Sports Solutions (ONSS) consortium — including Mississauga's Kenaidan Contracting Ltd. — owes it $4 million for work finished more than 20 months ago on three Pan Am projects. That includes $1.84 million on the new stadium. 

Kenaidan denies that it owes the Lancaster Group money, noting that the claim is part of a legal dispute.  Lancaster's claim has not been proven in court. 

City council voted last week not to hire Kenaidan for two years after the $145 million stadium was delayed by months. That move prompted Greg Crawford, Lancaster Group vice president of operations, to contact councillors and urge them to keep the ban in place until his company, with its 100 local employees, is paid. He said the company is struggling and has laid off workers because of the money it is owed.

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"We want the city of Hamilton to … fully appreciate that others still being hurt by this," Crawford said.

Lancaster have claimed for additional payments which we dispute.- David Kirkland, Kenaidan Contracting Ltd.

"We call on the City of Hamilton to stand up for local companies who have been gravely impacted by the mismanagement of the Tim Hortons Field project and the ongoing failure of its general contractors to settle their outstanding accounts," said the company in a letter to city councillors.  

The company filed a 2015 lawsuit against Bouygues Building Canada​ and Kenaidan Contracting Ltd. That's still ongoing.

In a statement Tuesday, Kenaidan president David Kirkland disputed Crawford's claim that Lancaster Group is owed money.

'Paid in full'

"The joint venture of Bouygues and Kenaidan has paid Lancaster in full for their contract work at the Pan Am facilities," Kirkland said.

"Lancaster have claimed for additional payments which we dispute. Lancaster have failed to prove their claims and this matter is the subject of a court action."

Crawford says before this, the company was expanding. But $4 million is "a major percentage of our annual sales."

The city also filed a notice of legal action against ONSS and the agency that hired it, Infrastructure Ontario (IO). Last week, city officials and Kirkland hinted that a legal settlement is imminent.

"We're left wondering when our turn at the plate is," Crawford told CBC.

'It injured our reputation'

Last week, Kirkland told councillors Kenaidan is "extremely sorry" for its missteps on the $145 million stadium. 

"It injured our reputation," he said. "It's something we regret, and we will regret for a long time."

The project was months late. Issues included problems with the design and the structural steel, which some say didn't accommodate "sway," or the motion of a stadium full of fans.

I haven't even accepted the apology.- Sam Merulla

Concrete footings were repoured. Even after the stadium opened, there were issues. Last year, a speaker the size of a bar fridge fell and destroyed several seats. The city hired its own engineer to check "anything in the air."

"We were put on notice very early in the project" that there were issues, Crawford said. Then as work continued, "everything just spiraled out of control."

Lloyd Ferguson, Ancaster councillor and chair of the city's Pan Am subcommittee, says it's "very distressing" if Lancaster is owed $4 million. But he wants to know more and make sure he has heard both sides. "I intend to reach out to Kenaidan and get their reaction to it."

'I haven't even accepted the apology'

Sam Merulla, Ward 4 councillor, proposed the two-year ban. The city can't get involved with Lancaster's battle, he said.

"It's not within our jurisdiction," he said. "That's a private sector scenario that deals with contracts. It's a civil matter."

Having said that, the ban is "up for renewal in two years," Merulla said. "That doesn't mean it'll automatically be renewed."

Kenaidan's effort was "not enough," Merulla said. "I haven't even accepted the apology."

And "I can say with a clear conscience and a very clear understanding that the majority of Hamiltonians feel the same way."

samantha.craggs@cbc.ca | @SamCraggsCBC