YELLOWKNIFE (September 24, 2015) – The Government of the Northwest Territories (GNWT) is currently reviewing a claim for an additional $32 million made by EGT Northwind, the project company constructing the Inuvik Tuktoyaktuk Highway. The claim amount has not yet been substantiated or verified by the GNWT.
The GNWT was advised by EGT Northwind that it might be making a claim against the contract to cover extra costs incurred while undertaking the contract. The Department of Transportation and the project company are engaged in a confidential business process written into the Inuvik-Tuktoyaktuk Highway contract for validating claims. The Independent Engineer, who provides objective oversight on the project, is working with the GNWT and the project company to resolve the issue in a timely manner.
“The Department of Transportation has been working closely with the contractor to understand the potential issue and determine next steps,” said Minister of Transportation Tom Beaulieu. “Once we have the information we need, we will be in a better position to identify what else, if anything, we need to do to successfully complete this project.”
Claims are a normal part of all construction contracts, regardless of the contracts’ scope. The GNWT is doing its due diligence as a government in reviewing the potential claim as part of normal business processes.
The Department of Transportation will continue to monitor the budget, progress and the quality of work to ensure the project is delivered to the highest standard and will update Members of the Legislative Assembly regularly.
The Inuvik Tuktoyaktuk Highway construction project is a significant contributor to the Beaufort Delta regional economy, delivering jobs, training and business opportunities to residents and was identified by the Members of the 17th Legislative Assembly as a way to strengthen and diversify the NWT economy by making strategic infrastructure investments.
EGT Northwind is a wholly Northern joint consortium that employed 600 individuals at the peak of construction last season, including 420 Beaufort Delta residents in a region with one of the highest unemployment rates in the NWT.
Media Inquiries:
Andrew Livingstone
Senior Cabinet Communications Advisor
Government of the Northwest Territories
NEW NUMBER: (867) 767-9000 ext. 11091
andrew_livingstone@gov.nt.ca