French construction giant takes N.W.T. gov't to court

The company the Northwest Territories government hired to do a $9-million bridge rehabilitation project is suing the government.

The Canadian arm of French construction giant Eiffage completed a rebuild of the Highway 5 bridge in the South Slave region in 2018.

But according to a statement of claim Eiffage filed a month ago, the territorial government is holding back a $250,000 payment for work that was disputed.

In the statement of claim, Eiffage says infrastructure officials noted cracks in the metal coating it applied to bolts and washers used in the reconstruction. Eiffage says it applied a new coating according to instructions from the manufacturer.

Eiffage said when the government officials disagreed, and argued the bolts and washers should have been sandblasted before the coating was applied, the dispute went to a referee both sides had agreed upon to settle any disputes that arose during the contract.

In the lawsuit, Eiffage says the referee decided in its favour and ordered the government to release the $250,000 it was withholding due to its dissatisfaction with the work.

Eiffage says the government has not released the money. It is suing for $250,000, plus interest plus legal costs.

The N.W.T. government has yet to file a statement of defence.

Federal taxpayers contributed approximately 75 percent of the funding for the project.