Ross River Dena to Sue Contractor over Duplex Build

Tuesday, 12 December 2017 10:57

RRDC says AYO Smart Home abandoned project this fall, taking $793,000.

The Ross River Dena Council will be taking legal action against a Vancouver-based housing contractor after it abandoned a three-duplex build earlier this year.

Following the declaration of a housing crisis in Ross River, by Chief Jack Caesar in October 2016, the federal department of Indigenous Affairs and the Ross River Dena Council hired AYO Smart Home to construct the three duplexes, on a fixed contract of $1.679 million. The project was to be completed in March 2018, however RRDC lawyer James Tucker says the First Nation started to become suspicious of the project, as it had not begun until after the completion deadline.

Suspecting the project was compromised, an independent engineering assessment was commissioned this fall. Tucker says the First Nation informed AYO Smart Home that an engineer would be on-site to assess the structural integrity of the duplexes. He says the contractor packed up his equipment and skipped town the day before the engineer was to arrive, walking away with more than $793,000. “The day before the engineers were to arrive, AYO abandoned the project, stopped construction and left Ross River completely.”

In October the First Nation received the engineer’s report with Tucker indicating there was “severe structural problems with construction that had already been complete.” Tucker says at that point the contract with AYO was terminated.

Despite this setback for the First Nation, it says it intends on completing with project, with the help of the Yukon Housing Corporation and INAC. Tucker says the First Nation has hired a new local contractor to finish the job. “RRDC is working with TSL Contractors LTD to tear down the unsafe portions of the duplexes.” “This is being done in a very aggressive schedule so construction is complete as soon as possible.” Tucker said. The completion date is expected before the end of March.

In a show of seriousness on completing the project, RRDC has invested $900,000 of its own capital money to get the project back on track. Tucker says once the demolition is complete, a second engineering assessment must be conducted on the foundation system, including the jacks and pads, suggesting that if water has gotten into the jacks, they could swell, compromising the integrity of the foundation.

Chief Caesar says this build is extremely important to the community as housing is still a major problem, with many people in Ross River homeless. He says despite the status of this build; community members remain positive about the project. RRDC is expected to get five housing units on loan from Yukon Housing. The five units come following the construction of a new teacher’s residence in Ross River. Caesar says he expects within the next six months that the housing stock will increase by 12-14 units. Yet he says Ross River needs approximately 30 more units.

Tucker could not give a timeframe on when the First Nation will be filing its lawsuit against AYO Smart Home. He says there was some communication with them, as AYO expressed that it wanted to complete the build and get paid. Tucker responded that, that was out of the question. Any online presence to AYO Smart Home has been removed. Tucker assures that the First Nation will be going after AYO Smart Home for the money it has paid out for the incomplete build.

(Dan Jones Whitehorse Dec. 11, 2017)