VVI Construction has made an offer to partially pay local contractors related to their work on the City of Quesnel’s new public works building.
VVI owes 16 subcontractors $1.4 million, according to a settlement offer from VVI obtained by the Quesnel Cariboo Observer.
According to the offer VVI, and the city, would pay contractors 90 per cent of what they are owed, totalling just under $1.3 million.
The majority of those funds would come from a $900,000 holdback from the city. That sum represents a builder’s lien holdback, with the remaining percentage paid by VVI.
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“In order to avoid the time and legal expense of resolving disputes relating to your claims and to hasten the release of the holdback and additional payment by VVI, VVI, with the authorization of the city and MKT Development Group, proposes to settle your claims,” the notice reads.
The city came under fire after contractors were not paid for not insuring the construction costs through a bond. A March 2021 news release from the city noted they had worked with VVI to pay some subcontractors directly.
“There is no requirement for the city to bond every construction project,” the city said in its news release. “This is a decision made by owners on a project by project basis based on the unique circumstances of each project, including cost implications and a variety of other factors. In the case of the public works facility, the decision was made by senior staff to not require bonding based on a balancing of those factors and their knowledge and pre-qualification of the general contractor.”
Construction on the public works building was completed in January of 2021.
The city of Quesnel paid VVI Construction $8.7 million, according to a statement of financial information for 2020.
All contractors must accept the deal, and release liens from VVI for the settlement to move forward.
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