Nunavut government shrugs off contractors’ complaints

A housing unit is seen under construction in Taloyoak in 2009. Housing minister Tagak Curley has shrugged off complaints by Nunavut’s construction association that contracting requirements are crippling the industry. (FILE PHOTO)

Nunavut’s housing minister has shrugged off complaints by the NWT and Nunavut Construction Association that a clampdown on contracting procedures is pushing the industry toward bankruptcy.

Last month, association president Bob Doherty complained that the Nunavut Housing Corp. is burying contractors in paperwork and trying to recoup some of the $110 million in cost overruns from the Nunavut Housing Trust fiasco from the construction industry.

In the Legislative Assembly June 3, housing minister Tagak Curley said the only housing contractor go bankrupt did so because it didn’t comply with Nunavummi Nangminiqaqtuki Iqajuuti policies, which are meant to steer business toward Inuit-owned companies.

Companies that follow NNI don’t have problems, Curley said.

“One issue that I know is that the NNI Policy has not bankrupted one company in Nunavut,” he said.

In a May 24 letter addressed to Doherty, Curley denied that accusation and replied that the NHC only tightened the screws on regulations already in place.

“Subsequent to the announcement of the over-commitments of the Nunavut Housing Trust, there is a greater public expectation that the [Government of Nunavut] and the NHC will demonstrate prudence and accountability in their contracting activities,” Curley wrote.

Doherty complained in a May 9 letter that the housing corporation is now demanding payroll information it never sought before, holding contractors liable for lost or missing building materials, and is no longer counting Inuit business owners as Inuit labour.

Curley’s response wasn’t good enough for the construction association.

Its June newsletter says Curley’s response “merely responds point by point to the issues.”

The newsletter said the association will keep pushing the government for changes, but hinted that its members may want to consider legal action.

“We encourage any affected member with concerns to explore all options to resolve their issue.”

In his reply, Curley said Inuit owners are counted, but are responsible for keeping track of how much labour they put into their company’s operations.

The housing corporation requires documented proof that local Inuit are working on a project before they pay out bonuses to the contractor, Curley wrote.

Doherty said the paperwork created by this requirement meant too much work for contractors and forced them to demand too much personal information from their employees.

But Curley said the GN provides contractors with forms that authorize employers to release such information.

Payroll records are the easiest way to get that information, he wrote.

Doherty’s letter said that NHC orders and ships building materials to communities then leaves them outside over the winter until construction season resumes.

He said by then, contractors often find materials have gone missing.

Curley replied it’s up to contractors to notify NHC of missing materials, which the housing corporation may replace. But if there’s no proof materials are missing, contractors could be out of luck, he wrote.

“If the material in question was not short in other communities which received the same building types… then the claims have to be investigated and substantiated before they can be accepted,” Curley wrote.