Contractor sues after N.L. government abandons building plans

Paradise-based company J&J Holdings has filed two statements of claim against the province. The move comes after construction projects in Stephenville Crossing and Cartwright were cancelled. Work on the Martin Gallant building in Stephenville Crossing and a new K-12 school in Cartwright came to a halt in June. At the time, the provincial government said it was, quote, re-scoping infrastructure projects to achieve better outcomes. The Martin Gallant Building contract was valued at more than $28 million, and the Cartwright School contract exceeded $38 million. In the statements of claim, JMJ Holdings is claiming damages for the wrongful cancellation of the contract, the province's misrepresentation of the site conditions, and for the release of JMJ's confidential commercial information. Since the cancellation of the contracts, JMJ Holdings has had claims and liens placed against them by subcontractors and suppliers. The company is also seeking payment for that, as well as work already completed. JMJ Holdings says that the claims and liens are the, quote, direct and foreseeable result of the province's wrongful cancellation of the contract and the delays it caused. Minister of Transportation and Infrastructure Barry Petten says he was not shocked these claims were filed, but he stands by the decision to cancel the projects. It was never about that company. It was canceling a contract that really should never have been awarded. And we were stuck. These are difficult decisions we make, and I've said that publicly many times. I didn't enjoy making either one of those decisions, but in the end of the day, it would have cost well over $100 million at least, and it was not money well spent. Petten says that the province will let the courts decide what is owed, and they anticipated they would need to pay something when the contract was canceled. Reagan Burden, CBC News, Happy Valley Goose Bay.