New Yukon hospitals could be delayed by contractor problems

Three major construction projects in Yukon are in limbo amid rumours of financial problems with the general contractor.

Some sub-contractors working on building community hospitals in Watson Lake and Dawson City aren't being paid by the general contractor, Dowland Contracting, according to the Yukon Hospital Corporation.

The combined value of the hospitals construction is about $50 million. Dowland is also building a new freshwater pump station in Whitehorse for about $5.5 million.

The hospital corporation said the situation has potential to delay completion of the projects. All three construction projects are at least 90 per cent complete.

Brian Crist, director of infrastructure and operations at the City of Whitehorse,said he expects bond guarantees will ensure the pump station is completed.

Jason Bilsky, CEO of the Yukon Hospital Corporation,said his project managers are also working with the bonding companies to ensure work continues in Dawson and Watson Lake. But Bilsky said he can no longer be sure the two hospitals will be ready for their scheduled opening dates in May.

Office managers at the Dowland offices in Whitehorse refused to comment.