Work on constructing the $80 million International Trade Centre in north Richmond has been halted amid a fiery financial wrangle and a defamation lawsuit between the project’s two main contractors.
More than two weeks ago, the two tower cranes above the massive project near Bridgeport and No. 3 roads fell silent and haven’t moved since.
At the root of the controversy lies a major fall-out between the principal contractor, Scott Construction, and the forming company it hired last year to build the concrete structure for the 14-storey luxury hotel part of the project, which includes an already-built 12-storey office tower.
By March 7, only seven of the 14 floors were completed when the "forming" company walked out on the job, claiming it hadn’t been paid by Scott since Dec. 31 last year.
Just a day later, on March 8, Scott, according to a defamation lawsuit filed this week in B.C. Supreme Court, terminated the contract with the forming company.
The forming company, which claims it's owed hundreds of thousands of dollars, since filed a “Claim of Builders Lien” (CBL) with the Land and Titles Office, effectively hindering the financing of the project.
And earlier this week, police had to be called to the site when the owner and employees of the forming company turned up to take away building materials they claim belonged to them.
“It’s already a year behind schedule and that’s what happens when you don’t pay your bills,” claimed a source at the forming company, who didn’t want to be named.
“We tried at the beginning of the month stopping for a day here and there, but it didn’t work.
“We don’t know whether the problem is with the investors or the owner or what? But we can’t continue to work without getting paid.”
Seven other similar builders’ liens for monies outstanding have been placed on the property this week, all from sub-contractors of the forming company.
However, Tom Russell, of Richmond-based PLLR Lawyers, on behalf of the project owner and Scott, claimed the issue lies with the forming company not paying its own sub-contractors, one of whom took out a lien on the property.
“It got a little hairy between (Scott and the forming company). We have now filed a lawsuit on behalf of Scott, alleging defamation and asking for an injunction to stop the verbal assaults on Scott’s name,” Russell told the Richmond News.
“Other work on the site is continuing and Scott is making arrangements to hire a new forming contractor. We have one, it’s just a case of working out the details.”
Russell said Scott was unable to release payments for January and February because of the lien placed by one of the forming company’s sub-contractors for work carried out last year.
He added that all the subsequent liens that have been placed were done so by the forming contractor and its sub-contractors, who “should have been paid by (the forming contractor).”
“Those sub-contractors are telling us they have not been paid by the forming contractor,” said Russell of the seven other liens on the property.
The defamation suit notes that all other contractors on the project are being paid and cites the forming company and its owner being “engaged in a series of threatening and harassing acts intended to intimidate, disparage and defame Scott and to interfere with Scott’s relationships with its customers, clients and other trade contractors.”
The suit also claims that someone from the forming company “hung a noose at the project,” and posted false and defamatory statements on website RipOffReport.com, which made connections between a Scott employee and “drug dealing relatives.”
The suit seeks an interim and permanent injunction, restraining the defendants and any of their associates and employees from communicating in any manner with trade contractors on the project, posting any further statements online and restraining the forming company owner from coming within 100 metres of the project
None of the allegations contained within the lawsuit have been proven in court.
“They’re trying to find someone else to finish the job without paying us,” claimed the source.
“We put them on notice prior to this happening. The payments, even until January were scratchy at best. They disputed everything. It was always an issue, every month.
“All our sub-contractors were paid. They’re playing a game to see how deep they can go. We can’t go any deeper, that’s why we walked out.”
Russell said his firm is taking legal steps to have the liens on the property removed, which could take a few weeks.
He added that the project has seen a few minor setbacks, but nothing out of the ordinary and denied that it’s more than a year behind schedule.
The International Trade Centre (ITC) has previously been estimated to open early in 2019.
Last fall, the office portion of the development, which was designed by GBL Architects for MYIE Homes, was topped off.
The hotel tower, when completed, will include a 14-storey OPUS by YOO Collection hotel with 110 rooms. The office portion of the development contains 110 strata office units.
It’s not the first time attention has been drawn to the project for the wrong reasons.
Last year, Michael Ching, the owner of the developer, MYIE Homes, made it onto China’s ‘most wanted’ list.
According to the list released by China’s Central Commission for Discipline Inspection (CCDI), Ching is accused of embezzlement and concealment of illegal gains.
“(Ching) acted in collusion with public officials in Hebei Province to jointly take into their possession large amounts of public funds by way of hyping up land prices and falsifying land transfer compensations. (Ching) also transferred large amounts of funds into his own account with clear awareness that these funds were illegal gains,” stated CCDI.
As well as the ITC, Ching also developed two towers on Lansdowne Road (the Spa Versante complex) and owns Collection 45 Properties Ltd. He was also a partner with Intracorp in the River Park Place development in the Oval Village area.
