New West Kelowna city hall under construction, Tuesday, Nov. 21, 2023.

(MARSHALL JONES / iNFOnews.ca)

A BC construction company is taking a contractor to court claiming more than $700,000 in unpaid invoices for work at West Kelowna's new city hall.

Seagate Mass Timber Inc. is not only claiming it's owed hundreds of thousands in unpaid work, but it also claims the main contractor used money held in trust for itself, according to a newly filed lawsuit in BC Supreme Court.

The City of West Kelowna committed to its new multi-million dollar city hall facility in 2021, awarding at least part of the job to Stuart Olson Construction Ltd. with a nearly $990,000 contract.

Seagate was subcontracted in January 2022 for installing prefabricated mass timber, originally quoting $430,150 for the job.

"Seagate provided the work without delay and in a good workmanlike manner," the notice of claim reads. "However, ... Stuart Olson has refused or neglected to make payment."

In total, Seagate claims four invoices have gone unpaid, amounting to $697,979. Stuart Olson has not "substantively" responded to Seagate's requests, according to the claim. Seagate has since filed two liens against the city hall property in the amount of the unpaid work.

It goes on to blame Stuart Olson for a three-month delay in work earlier this year, claiming the company didn't coordinate with Seagate and cost it around $264,000 in damages.

Seagate is looking to the court to affirm Stuart Olson is in breach of trust and that Seagate is entitled to the lien against the property, according to the claim.

The new city hall build has been years in the making, with voters originally opposing the project in 2016. It came back in recent years, with the City budgeting for an $18 million build in 2016.

According to Global Okanagan, that's now increased to more than $22 million, not only exceeding its budget but also its time.

According to West Kelowna deputy CAO Trevor Seibel, the city was notified of the claim Tuesday morning, Nov. 21. He would not, however, comment on the lawsuit, which mainly concerns payment issues between the two construction companies, despite naming the City as a defendant.

As for its timeline, staff expect City administration to move into the new city hall building by late January or mid-February.

Stuart Olson did not immediately respond to requests for comment from iNFOnews.ca. 

Seagate's claims have not been tested in court.

— This story was updated at 8:15 a.m., Nov. 22, 2023, to include a statement from Trevor Seibel of the City of West Kelowna.

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