Earlier this month, the Northern Reginal Construction Association (NRCA) alleged that contractors still have not been paid for their services performed when building the Prince George Marriott.
UPA Construction Group denied the allegations, saying numerous statements made by the NRCA and CEO Scott Bone were false which led the NRCA to say they were open to proof that contractors had indeed been paid by UPA.
Now, things are headed to legal stages.
In a letter dated March 25, Jenkins Marzban Legal LLP Lawyers penned a response to a memorandum from Feb. 25, 2019 by the NRCA, which they claim a number of statements from the NRCA 'were and are false, misleading and disparaging, with an intent to injure UPA.'
Legal counsel for UPA listed the following statements from NRCA specifically that allege non-payment:
- In early 2018, UPA Construction clearly demonstrated their intent not to issue payment to our members in a timely manner. NRCA members asked me to intervene to review the contact conditions and negotiate a resolution on outstanding payments of $1.8 million.
- For over 14 months, I have encountered significant challenges and delays in getting any response from UPA Construction to issue payments other than demanding our members reduce their contract pricing upwards to 30 per cent or seek payment through legal action.
- This action by UPA is unethical, contravenes contract conditions and illustrates a lack of good faith for work performed.
The lawyer representing UPA, David T. Mckenzie, countered the statements with the following alleged facts from UPA:
- The amounts claimed by trades and suppliers were incorrect. $1.8 million was not due and owing as alleged.
- The Marriott Courtyard project was behind schedule, and the Marriott Courtyard owner had advanced a substantial claim for delay damages against UPA, which damages the owner sought to deduct from amounts which would otherwise have been owed to UPA. Those of UPA's trades and suppliers that contributed to that delay: (i) were responsible in part for amounts claimed by the owner, and (ii) therefore UPA was legally entitled to set off its damages as against trades that caused the delay.
- Between Aug. and Nov. of 2018, UPA spent considerable time and effort reaching negotiated settlements with the Marriott Courtyard owner and with the majority of UPA's trades and suppliers, whose claims exceeded $1.6 million in the aggregate.
- UPA has worked diligently, in good faith and in accordance with the law to resolve all issues with tradies, including the issues caused by their delays. Pursuant to UPA's contracts with trades it entered into negotiations with them. The vast majority of all trade and supplier claims have been resolved through negotiated settlement, with all but one of those trades and suppliers represented by legal counsel in those negotiations.
Mckenzie also pointed to statements made by the NRCA to media that they say 'were and are false, misleading and disparaging and that were made with an intent to injure UPA, which statements had been published online and elsewhere.'
"The published statements in the Memorandum and the statements to the media are false, have lowered UPA's reputation, and are defamatory as a result. It is clear that the statements were published with malicious intent to cause financial harm to UPA," Mckenzie says. "Indeed, UPA has suffered reputational and financial harm as a result."
Mckenzie writes that it is demanded that the NRCA immediately publish a complete retraction of the memorandum, issue an apology to UPA and Prince George Hotel Limited Partnership and end the boycott of the Marriott Courtyard hotel in Prince George.
When reached for comment by PrinceGeorgeMatters, Northern Regional Construction Association CEO Scott Bone says the NRCA has engaged legal counsel regarding the matter.
