The City has complied with all of its financial obligations for
this project and has followed the requirements of the Builders Lien Act. When
the City became aware of some unpaid subcontractors, the City worked with the
General Contractor to provide some payments directly to subcontractors from
funds the City still owed to the General Contractor to the extent that the
Contract and the law allowed. The City has now paid all funds owing on this
project except for the builder’s lien and deficiency holdbacks.
The City is aware that some subcontractors have still not been
paid by the General Contractor on this project. There is no bonding available
to provide for payment of sub-contractors, but the City will continue to work
with the General Contractor to try to encourage full payment of any unpaid
sub-contractors.
There is no requirement for the City to bond every construction
project. This is a decision made by owners on a project by project basis based
on the unique circumstances of each project, including cost implications and a
variety of other factors. In the case of the public works facility, the
decision was made by senior staff to not require bonding based on a balancing
of those factors and their knowledge and pre-qualification of the General
Contractor.
Any unpaid subcontractor should be following up with the General
Contractor with whom they entered a contract. The funds held by the City under
the Builders Lien Act will be dealt with in accordance with the requirements of
that legislation.
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