Contractor blames N.B. government for bridge work delays in lawsuit seeking $27M
Ontario-based Julmac Consulting says N.B. standards are more onerous for companies that aren't local
An Ontario-based construction firm is blaming the New Brunswick government for delays it has encountered in getting work done on projects, including the Marysville Bridge in Fredericton and the Centennial Bridge in Miramichi.
Julmac Contracting Ltd. is suing the province, identified as GNB in the statement of claim, alleging delays on these and other projects are the result of overly onerous requirements for the work Julmac has been contracted to carry out, compared to what's required of New Brunswick-based companies.
"GNB has discretion over whether to require contractors to use more expensive materials, or to provide more detailed submittals in support of proposed designs, or to employ more expensive construction methods — beyond what is required for safe design and construction," Julmac says in its claim filed in Fredericton Court of King's Bench.
"On contracts involving locally based construction companies, GNB systematically does not require that the contractors meet these higher standards. When JCL is the contractor, GNB systematically insists that JCL meet this higher standard."
Aside from the Marysville and Centennial bridges, Julmac says in its claim that it holds contracts with the province to carry out work on the Mactaquac Dam crossing, and Anderson Bridge in Miramichi.
The lawsuit is seeking $27 million in damages from the province. These include $8 million for "unjustified" costs imposed by the province, and an estimated $15 million for lost profits from losing future bridge contracts.
None of the allegations have been tested in court.
No further comment from parties
CBC News asked for interviews with Transportation and Infrastructure Minister Richard Ames and deputy minister Rob Taylor.
In an email, department spokesperson Jacob MacDonald said no one would comment because the case is before a court.
Court documents show the provincial government intends to defend itself but has not yet filed a statement of defence.
Shalom Cumbo-Steinmetz, one of the lawyers representing Julmac, declined providing an interview with CBC News about the lawsuit.
The
Mactaquac Dam crossing is one of the projects Julmac Contracting Ltd.
claims has been delayed by overly onerous construction requirements
imposed by the provincial government. (Mike Heenan/CBC)
CBC News also made requests by email for an interview with someone from Julmac, but the company did not respond.
Julmac describes itself on its website as a construction company that specializes in bridge rehabilitation and restoration, along with steel fabrication.
A section of the website listing its past and current projects includes the four New Brunswick projects named in the lawsuit, as well as the Angus L. Macdonald Bridge in Halifax and the Trout River Bridge in the Northwest Territories.
The company was founded in Alberta in 2001, and got new owners in 2019, resulting in its head office being moved to Toronto.
New Brunswick's corporate affairs registry shows Julmac has been registered in the province since April 2020, and lists Derek Martin as its sole director.
Delays irking public
The Centennial Bridge is undergoing a $100-million refurbishment that started in 2023 and was supposed to finish next year.
But expected construction work this year has been delayed, following delays already seen last year, along with no revised completion date being offered by the provincial government.
In Fredericton, the $7.3-million Marysville Bridge refurbishment was supposed to be completed in 2023, but the completion date has been revised to the end of this year.
That's left motorists dealing with delays in crossing the bridge, as it has mostly been reduced to one lane since July 2022.
Alleged unfair treatment
Julmac, in its lawsuit, alleges the delays in its bridge projects are due to unfair treatment by the Department of Transportation and Infrastructure.
The lawsuit alleges there's a "two-tiered playing field" between out-of-province contractors and local contractors that bid on procurement projects.
Julmac claims the department subjects it to overly stringent reviews of the work it conducts, resulting in project delays and cost increases for the company.
The company says less rigorous reviews are done when New Brunswick companies are in charge of a project, though the lawsuit doesn't name specific companies or offer examples of when that happened.
Julmac also says the Department of Transportation and Infrastructure requires it to use more expensive plywood when it comes to doing concrete formwork on bridges, costing the company hundreds of thousands of dollars more than if it were allowed to use regular plywood.
The company says by comparison, the department lets local contractors use regular plywood, allowing those companies to submit lower bids and complete projects at a cheaper price.
"JCL's projects have been unjustifiably delayed by GNB's increased requirements … and by GNB's protracted and unfair drawing review and approval process," Julmac says in its claim.
Julmac has made similar allegations against the New Brunswick government in a complaint filed under the Canadian Free Trade Agreement, which governs inter-provincial trade rules in Canada.
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"Bridge over Troubled Waters"
..... Simon and Garfunkel
"Troubled Bridge over Water"
.... NB Government and Julmac Contracting