Graham responds to cancellation of Grande Prairie contract

By ReNew Canada 11:25AM September 12, 2018



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Graham Construction has released an official statement in regarding to Alberta Infrastructure’s decision to terminate its contract with the company for the construction of the Grande Prairie Regional Hospital.

Here is the full statement from the company:

Graham Construction is deeply disappointed by the actions of the Government of Alberta today.

The timeline released by the Government of Alberta today omits a key fact. On August 17th, 2018 Graham issued a Notice of Termination to the Government of Alberta as their contractual obligations to the project had not been adequately addressed. As stated in the August 17th, 2018 letter:

“As a result of the entirety of the foregoing and Infrastructure’s failure and continued refusal to correct its default within the 5 working days allotted to it under GC 7.2.4 of the Contract, this correspondence hereby serves as Graham’s Notice of Termination of the Contract.”

This was the culmination of Graham’s continued advice to Infrastructure that the project was underfunded to build the project as designed by Alberta Infrastructure’s designer.

We also had conversations with the Government of Alberta as recently as last week in which we believed we were moving towards a solution for Grande Prairie.

Due to the importance of the project to the people of Grande Prairie, Graham was prepared to engage in a conciliatory process to “reboot” the project and to re energize and re-align the project team, with the central purpose of seeing to the Health Centre’s completion. This included our offer to bring in a third-party mediator.

As previously stated, Graham was placed in an untenable position by the Government of Alberta. Graham was hired as the cost-reimbursable construction manager of the Grande Prairie Regional Hospital and was confronted with a number of significant issues including multiple design delays on an underfunded project. Alberta Infrastructure made it clear it was not prepared to stand by its obligations under its contract with Graham Construction. Graham, an Alberta-based employee owned company of over 1500 people, is confident in its forthcoming fact-based claim for damages arising from the Government of Alberta’s actions.

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