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City owes more than $500,000 for water main projects, contractor says

Lawsuit claims city reneged on extra work caused by pair of water main breaks and tie-in work not included in contract
Prince George City Hall
City Hall in Prince George.

A contractor has taken the City of Prince George to court, claiming the municipality has reneged on more than $500,000 worth of unexpected extra work related to the installation of a pair of water mains.

In a notice of claim, Progrus Constructors Inc. says it had to deal with two breaks along the city's existing water mains while installing a new PVC water main along Chief Lake Road during the late summer of 2021.

One occurred in August when workers struck the main at Highway 97 North and the other in September when the main at Kelly Road "spontaneously ruptured" and flooded the nearby Chief Lake Road excavation.

Progrus says  the city is responsible for both of them, alleging the municipality failed to properly identify the location of the main along Highway 97 North and failed to properly maintain or install the Kelly Road water main.

Including a 10 percent markup and GST, Progrus is seeking $233,515.15 for the costs of repairs from the breaks and an alleged 31 days worth of subsequent delays to complete the Chief Lake Road project.

As well, Progrus is seeking $287,864.04 for "extra work" done while installing PVC watermain at the intersection of Patricia Boulevard and Ontario Street at about the same time as the Chief Lake Road project.

According to the claim, in November 2021 the city directed Progrus to expose two additional portions beyond the existing location specified in the contract and carry out some tie-in work.

Progrus "duly performed" the extra work, however the city has "refused or neglected" to pay. For that, Progrus is seeking $195,681.51, GST included, in allegedly outstanding payments plus $92,182.53 in "lost profits" created when the city subsequently repudiated the contract and took over the remaining work.

All told, Kamloops-based Progrus is claiming $521,379.19 in damages plus interest, legal costs and any further relief the court may deem appropriate.

Progrus filed the notice of claim on August 25 in B.C. Supreme  Court in Vancouver. The allegations have not been tested in court and the city has not yet filed a response.

 "As this matter is before the courts, we will not be making a comment on this matter at this time," city spokesperson Claire Thwaites said Thursday.