The contractor who completed the 10th Street Bridge replacement project in Owen Sound has filed a legal claim seeking more than $539,000 from the city for “unforeseen” costs related to the job.
Looby Builders (Dublin) Limited is listed as the plaintiff in an Oct. 29 statement of claim filed in the Ontario Superior Court of Justice seeking compensation from the city for high water level, Covid-19 and building settlement impacts which the contractor says resulted in “additional unforeseen costs” on the project.
The city of Owen Sound is listed as the defendant in the filing. A source confirms the city’s external legal counsel is preparing a statement of defence.
The 10th Street Bridge — now known as the Giche-name-wiikwedong Bridge — closed in October 2019 for the replacement project and re-opened to traffic the following year, on Dec. 11, 2020.
Looby Builders Limited was awarded an $8.68-million contract by the city in 2019 for the construction work related to the project.
The contractor says in the court filing during the course of the work it submitted various claims for additional costs, and the city or contract administrator have failed or refused to approve them.
Looby’s statement of claim says it gave verbal and written notice to the city about “record high water levels” in the Sydenham River that were above levels noted at the time of tender, and in turn impacting the project. Looby is seeking $226,639 from the city for its high water level claim, citing additional labour, equipment and materials costs related to it.
Looby is also seeking $210,683 in payment from the city for “Covid-19 impacts” and claims additional costs were incurred as a result of the pandemic that were not contemplated at the time of tender.
A third claim included is for $39,727 and the contractor says it relates to movement in 994 1st Avenue East, the remaining half of a structure that was demolished as part of the bridge work. Looby claims it was directed by the contract administrator to stop working on or about April 16, 2020 due to concerns with movement of the building and as a result Looby’s subcontractor was on standby and could not continue with the scheduled bridge work. It is claiming compensation for the standby costs.
Looby’s statement of claim says despite “repeated demands for payment” the city and contract administrator have “refused to acknowledge” the high water level, Covid-19 and building settlement impact claims.
In all, the contractor is seeking $477,051 from the city — $539,068 including HST.
Owen Sound’s Director of Public Works and Engineering Dennis Kefalas provided a brief update about the litigation in a report to the city’s operations committee at its Nov. 9 meeting. Kefalas says in the report Looby had previously submitted additional invoices for work related to the project and staff refused payment after review of the invoices, ongoing discussion with Looby, and in light of the guidelines in the contract for resolving unforeseen costs.
Kefalas’ report acknowledges the statement of claim filed by Looby and says “staff, the engineering consultant and external legal counsel have reviewed the content of the submissions and agree that the claims have no merit and will proceed with defending that position.”
