GNWT, EGT Northwind reach agreement on Inuvik/Tuk highway cost overruns

The N.W.T. government has reached an agreement with the contractor building the Inuvik to Tuktoyaktuk highway, after it claimed millions in cost overruns.

EGT Northwind, a joint venture of two Inuvialuit-owned companies — E. Gruben Transport and Northwind Industries — was awarded the $229 million contract to construct the 120 kilometre all-weather road in January of 2014.

But last month the Government of the Northwest Territories announced that they were reviewing a $32 million claim from the contractor to cover extra costs incurred.

That amount includes a $12 million claim for costs incurred during the first two winters of construction.

The highways director for the department of transportation says that claim has been resolved.

"The government has agreed to pay some monies, release some other monies, and provide times," said Kevin McLeod.

However, he won't give any details about the deal with the contractor.

"It's a formula of things that we can use within the contract, which is confidential to the contractor because he wants to obviously protect his business operations," McLeod said.

The other $20 million claimed is how much the contractor advised the government it anticipates losing during the remaining two years of the project.

McLeod says that claim has yet to be resolved.

But he says he's still confident the highway will not go over budget and will be complete next winter.