Thank you, Madam Chair. Claims between contractors and their subs could range from a huge, huge variety of situations. A bond is a time-sensitive tool, and if a subcontractor with a legitimate claim fails to take action under the bond on the assumption that the GNWT will intervene for some reason, they may jeopardize their ability to pursue relief provided by the surety. We make sure that the large projects have bonds in place to protect the subs and we make sure that those are adhered to, but individuals have to make sure that they utilize them as well.
Thank you. In large public infrastructure projects, and I dare not attempt to define what that may or may not be, but has there ever been any consideration that instead of writing the general to sign off on the fact that they paid their contractors or subcontractors in good faith, has the government ever considered writing the subs to ensure that they’ve been up to speed or paid up to date? Now, I realize that every dispute can’t be a simple yes or no, saying yes, we’ve been paid up to date or no, we haven’t. So I suspect and I recognize the difficulty there, but there would be ways of ensuring that they are paying, so when they’re signing off that that’s part of the compliance agreement to ensure that leads to their bond being released. Thank you.
Thanks, and I’ll go to the deputy for some more specifics, but at the end of the day we require our contractors to have a bond in place for their subcontractors and our contract is with the primary. The project that we’re getting is from the primary, and our dealings and our negotiations are with the primary. Their contracts are separate, independent legal documents between them and another party and it would be inappropriate for us to interfere with a separate legal contract between two other parties. We want to make sure that everybody is protected in the process. We make sure that the bonds are in place for these large projects, but for some more specifics I will go to the deputy minister.
Thanks, Minister Abernethy. Mr. Guy.
Thank you, Madam Chair. Yes, just following up on what the Minister has said and in response to the question, there are a number of checks and balances along the way in the process where the progress payments, and through the final payments, and through the processing of statutory declaration of those things, where information is gathered to provide some confirmation that subcontractors have been paid for the work that has been done, many cases there are disputes between the general contractor, the subcontractor, there can be claims and counterclaims. Perhaps the subcontractor didn’t do some of the work he said he was going to do and the general contractor had other work done. There’s also money that is held up in the holdback, which the government may not release until all the work is complete, or it may be held until final completion or substantial completion of the project. In addition, there are also funds owing to a subcontractor that may be tied up in unresolved change orders.
So there’s a number of ways those funds would be there. But when a subcontractor does come to us with concerns, we do provide the advice, guidance and what’s available, and what their options are through the contract. We do give them that information and direct them to the bonding company or whatever other surety is in place. Certainly, if there are mechanisms where we can use the leverage we have with holdbacks to help resolve the problem, we would look at that wherever we can, but we must look and follow the rules and the terms and conditions of the contract that we have with the general contractor, as well as protect the public’s interest. We can’t be necessarily diving into issues between two other parties that may increase the liability of the government. Thank you, Madam Chair.
Thank you, Mr. Guy. Mr. Hawkins.
Is it normal for the government to be named in disputes when subcontractors have problems with the general? Thank you.
There have been cases in the past where there have been disputes that have included naming the government. Obviously, the owner is an option that somebody might try to pursue, particularly an owner with deep pockets. In many cases, we are included in any litigation that may happen, and in many cases it takes years to resolve. Thank you, Madam Chair.
Thank you, Mr. Guy. Minister Abernethy.
Thank you, Madam Chair. With respect to litigation, individuals looking to bring a lawsuit against somebody tend to throw large nets and try to capture as many people as they can. They’ll write as many names on the list as they can, hoping to catch somebody. We have bonds in place, we have contracts in place and our dealings are with the primaries.
Thank you, Minister. Mr. Hawkins.
That’s okay for now. Thank you.
Thank you, Mr. Hawkins. Mr. Menicoche.
Thank you, Madam Chair. I move that we report progress.
---Carried
Can I have the report of Committee of the Whole, Ms. Bisaro.
Thank you, Mr. Speaker. Mr. Speaker, your committee has been considering Tabled Document 9-17(4), NWT Main Estimates, 2013-2014, and would like to report progress with eight motions being adopted. Mr. Speaker, I move that the report of Committee of the Whole be concurred with. Thank you, Mr. Speaker.
Thank you, Ms. Bisaro. A motion is on the floor. Do we have a seconder? The seconder is Mr. Abernethy.
---Carried
Orders of the day for Wednesday, February 27, 2013, 1:30 p.m.:
Prayer
Ministers’ Statements
Members’ Statements
Returns to Oral Questions
Recognition of Visitors in the Gallery
Acknowledgements
Oral Questions
Written Questions
Returns to Written Questions
Replies to Opening Address
Petitions
Report of Standing and Special Committees
Reports of Committees on the Review of Bills
Tabling of Documents
Notices of Motion
Notices of Motion for First Reading of Bills
Motions
First Reading of Bills
Bill 2, An Act to Amend the Territorial Parks Act
Second Reading of Bills
Consideration in Committee of the Whole of Bills and Other Matters
Tabled Document 9-17(4), NWT Main Estimates, 2013-2014
Bill 1, Tlicho Statutes Amendment Act
Report of Committee of the Whole
Third Reading of Bills
Orders of the Day
Thank you, Mr. Clerk. Accordingly, this House stands adjourned until Wednesday, February 27th, at 1:30 p.m.
---ADJOURNMENT
The House adjourned at 8:03 p.m.
