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Legal win for school district but Coquitlam students still waiting for gym, weight room, classrooms

School District 43 can keep $4.3 million in hold back funds until a new Neighbourhood Learning Centre for Centennial school is substantially completed, a BC Supreme Court judge has decided, but that won't be until early 2022

A long-awaited gym, weight room, classrooms and neighbourhood learning centre for Centennial Secondary in Coquitlam won’t be open in time for the new school year.

But School District 43 (SD43) is starting to see light at the end of the tunnel for the multi-million construction project that has been dogged by legal and construction troubles for more than three years.

Recently, a BC Supreme Court judge agreed SD43 should keep nearly $4.3 million in holdback fees for the project as a safeguard against any future liens from tradespeople and contractors that might arise due to issues with a previous contractor.

“The court ruled in our favour so it is considered a ‘win.’ We are continuing to work with all parties to have the project completed as quickly as possible,” said SD43 spokesperson Ken Hoff.

Zurich Insurance Company Ltd. had sought release of the holdback funds arguing that it had dealt with claims against the previous contractor. 

However, SD43 sought clarification as to whether the contract was completed or not and if it should keep the funds as a hedge against future problems.

SD43 had terminated its contract with Envoy Construction citing “failure to complete the work in a timely manner and failure to pay subcontractors and material suppliers,” according to court documents

It sought a solution from Zurich, which arranged for another contractor, Carver Construction Ltd., to finish the work.

In the July 20 court judgement, Supreme Court Justice Nathan Smith stated the “head contract” was not complete, requiring SD43 to keep the holdback funds until 55 days following substantial completion of the work.

Despite the win, the district is facing some additional legal headwinds.

In his July 20 decision, the Supreme Court judge noted that Envoy has filed a lien claim in the amount of $6.3 million against SD43 and commenced action to enforce it. 

The school board, meanwhile, has counterclaimed for damages.

While the building won’t be ready for a Sept. 7 opening, it looks substantially completed, and workers were on site this week putting finishing touches to cladding and working on the interior of the building.

SD43 confirmed in an email that the building should be completed in early 2022, approximately four years after it was started.

Meanwhile, next door, site preparation is ongoing for a $3.6-million soccer field in a joint project with the city of Coquitlam.