The awarding of the Millennium Ponds contract is the source of a lawsuit against the City of Castlegar. (File photo)

The awarding of the Millennium Ponds contract is the source of a lawsuit against the City of Castlegar. (File photo)

Construction company wins lawsuit against City of Castlegar

Maglio Installations accused City of Castlegar of breech of contract over Millennium Ponds contract.

A judge has ruled against the City of Castlegar in a case brought forward by a local construction company.

Maglio Installations Ltd. accused the City of Castlegar of being in breech of contract for the way it awarded the contract to build the Millennium Natural Swimming Ponds in 2013.

The contract was awarded to Marwest Industries Ltd. and Maglio Installations contends that the Marwest bid should have been disqualified because it was missing a preliminary construction schedule requested in the invitation to tender.

According to court documents: “The major items to be described comprised the various stages of the construction process; those items were, for example: general requirements including things like surveying and setting up traffic regulation and site work including things like clearing the land and installing a liner for the pool bottoms.”

The City of Castlegar has issued at statement saying, “This was a complicated project that involved optional pricing scenarios, water act approvals, archaeological assessments, First Nation’s approval and monitoring of Columbia River Water levels. As such the City hired a geotechnical engineering firm to help with the tender process. The City made its tender selection under detailed advice from its City lawyers and its consulting engineers.

“When challenged in the court, the City’s insurer Municipal Insurance Association (MIA) used their lawyers who reviewed the case and agreed with the City’s original selection. Unfortunately the judge accepted the plaintiff’s position.”

The amount of damages to be awarded to Maglio Installations will be determined at a future hearing.

The city explained how the damages will be paid in their statement, “The City carries liability insurance with the Municipal Insurance Association of British Columbia (MIA) and part of the insurance coverage is a liability protection agreement which covers the City in cases such as this case. The City’s liability exposure is therefore limited to its insurance deductible which is $10,000 regardless of the damages judgment.

According to the city’s statement, the case may not be over as an appeal is being considered. “Following the judge’s decision which the City strongly disagrees with, the Municipal Insurance Association is currently considering whether to appeal.”

You can view the full judgement at http://www.courts.gov.bc.ca/jdb-txt/sc/17/08/2017BCSC0870.htm