Hamilton company looks for council support over stadium pay dispute

A local company wants Hamilton city council's support in its dispute over what it says are unpaid bills related to construction work at Tim Hortons Field stadium.

We're left wondering when our turn at the plate is.- Greg Crawford, Lancaster Group

The Lancaster Group, a 62-year-old Hamilton company that does heating, ventilation and air conditioning work,claimsthe Ontario Sports Solutions (ONSS) consortium including Mississauga'sKenaidan Contracting Ltd. owes it $4 million for work finished more than 20 months ago on three Pan Am projects. That includes $1.84 million on the new stadium.

Kenaidandenies that it owes the Lancaster Group money, noting that the claim is part of a legal dispute. Lancaster's claim has not been proven in court.

City council voted last week not to hire Kenaidan for two years after the $145 million stadium was delayed by months. That move promptedGreg Crawford,Lancaster Group vice president of operations, to contact councillorsand urge them to keep the ban in place untilhis company, with its 100 local employees, ispaid. He said the company is struggling and has laid off workers because of the money it is owed.

• City won't hire construction co. involved in stadium mess for 2 years
• Construction firm 'extremely sorry' for stadium problems wants to be hired again

"We wantthe city of Hamilton to fully appreciate that others still being hurt by this," Crawford said.

Lancaster have claimed for additional payments which we dispute.- David Kirkland, Kenaidan Contracting Ltd.

"We call on the City of Hamilton to stand up for local companies who have been gravely impacted bythemismanagement of the TimHortonsField project andtheongoing failureof its general contractorsto settletheir outstandingaccounts,"said the company in a letter to city councillors.

The company filed a 2015lawsuit againstBouyguesBuildingCanada andKenaidanContracting Ltd. That's still ongoing.

In a statement Tuesday,Kenaidanpresident David Kirkland disputed Crawford's claim that Lancaster Group is owed money.

'Paid in full'

"The joint venture ofBouyguesandKenaidanhas paid Lancaster in full for their contract work at the Pan Am facilities," Kirkland said.

"Lancaster have claimed for additional payments which we dispute. Lancaster have failed to prove their claims and this matter is the subject of a court action."

Crawford says before this, the company was expanding. But $4 million is "a major percentage of our annual sales."

The city also filed a notice of legal action againstONSSand the agency that hired it, Infrastructure Ontario (IO). Last week, city officialsand Kirklandhinted that a legal settlement is imminent.

"We're left wondering when our turn at the plate is," Crawford told CBC.

'It injured our reputation'

Last week, Kirkland toldcouncillorsKenaidanis "extremely sorry" for its missteps on the$145 million stadium.

"It injured our reputation," he said."It's something we regret, and we will regret for a long time."

The project was months late.Issues included problems with the design and the structural steel, which some say didn't accommodate "sway," or the motion of a stadium full of fans.

I haven't even accepted the apology.- Sam Merulla

Concrete footings were repoured. Even after the stadiumopened, there were issues. Last year, a speaker the size of a bar fridge fell and destroyed several seats. The city hired its own engineer to check "anything in the air."

"We were put on notice very early in the project" that there were issues, Crawford said. Then as work continued,"everything just spiraled out of control."

Lloyd Ferguson, Ancaster councillor and chair of the city's Pan Am subcommittee, says it's "very distressing" if Lancaster is owed $4 million. But he wants to know more and make sure he has heard both sides. "I intend to reach out toKenaidanand get their reaction to it."

'I haven't even accepted the apology'

Sam Merulla, Ward 4 councillor,proposed the two-year ban. The city can't get involved with Lancaster's battle, he said.

"It's not within our jurisdiction," he said. "That's a private sector scenario that dealswith contracts. It's a civil matter."

Having said that, the ban is "up for renewal in two years," Merulla said. "That doesn't mean it'll automatically be renewed."

Kenaidan's effort was "not enough," Merulla said. "I haven't even accepted the apology."

And "I can say with a clear conscience and a very clear understanding that the majority of Hamiltonians feel the same way."

samantha.craggs@cbc.ca | @SamCraggsCBC