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Canadian firm sues Govt. for $1.4m

A Canadian architectural company is suing Government for more than $1.4 million after being booted off the project to build the new Police and court complex.

Carruthers Shaw and Partners (CS&P) also claims it has not been paid for a separate project to build Government laboratories at Marsh Folly.

The Royal Gazette understands from sources that the Toronto-based firm was enlisted to work on the Police station and Magistrates' Court plans in August 1997. It drew up the construction plans and developed the specifications before the project went out to tender, and oversaw the tendering and bid process.

Canadian company Lisgar won the bid to build the facility in partnership with local company Landmark, and CS&P began to administer the construction work. However, said one source: "In December 2008, without notice, the Government told CS&P that it was cancelling CS&P's contract for the court project, and it replaced CS&P with [local company] Conyers and Associates."

The Royal Gazette understands the company was not given any explanation as to why its contract was cancelled. According to the source: "CS&P were basically just kicked off the job and after that happened, CS&P sought to be paid the balance of what it was due for fees and expenses."

The fees owing, set out in court documents relating to a claim now before the Supreme Court, is $1.3 million. "The Government has refused to pay and CS&P was essentially left with no choice but to sue," added the source. The company is also chasing Government through the courts in relation to $119,000 owed for work done on the Marsh Folly development.

It was taken on in June 2008 to work on that building, which is set to house Police, Ministry of Health and Ministry of Works and Engineering offices and laboratories. Although CS&P has not been terminated from that job, it's understood that bills remain unpaid.

Court action was launched against the then-Minister of Works and Engineering Derrick Burgess on October 1, and papers have been served, although the matter has yet to reach a court hearing.

Lawyer Alan Dunch, who is representing CS&P said yesterday: "This is a straightforward action to recover fees and expenses that were properly incurred under the terms of the engagement that CS&P had with the Government in relation to both projects.

"It is unfortunate that CS&P has been left with no alternative but to pursue the matter in the Supreme Court of Bermuda, but the reality is that efforts to resolve the outstanding dispute through discussion and negotiation proved to be fruitless.

"Given the amount involved, and the clear evidence that the debt is due and payable, it really is disappointing that CS&P have to go to this kind of trouble and expense to get paid. However, that's what the legal system is in place for."

Mr. Burgess, who is now Deputy Premier and Minister of Public Works, told The Royal Gazette in November 2008 that a local firm of architects was brought onto the project after problems arose because of "geotechnical challenges" and management deficiencies. He also blamed delays on the fact that the original architects, CS&P, were based in Canada.

"The plans that came from Carruthers had 50-odd piles we ended up putting about 20 there. It is hard ground," he said. "When you get folks from overseas doing these plans they do it based on the Canadian environment. Bermuda is different, you don't have to put all these pylon there."

Asked why a Canadian firm had been employed Mr. Burgess said: "Those plans are over ten years old, certainly before I got there."

He was invited to respond to this story, but no comment was forthcoming by press time.