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Northern Regional Construction Association alleges Prince George Marriott contractors still not paid

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The Courtyard Prince George Marriott contractors are claiming they still have not been paid. (via Courtyard by Marriott Hotels)

A bump in the road could have been hit for a local Prince George hotel, with contractors claiming they haven't been paid for their services yet.

According to Northern Regional Construction Association (NRCA) CEO Scott Bone, in early 2018, several members were awarded contracts to UPA Construction Group for sub-trade contracts. They were allegedly not being paid in a timely manner for work done in regards to the Prince George Marriott Hotel, which has now resulted in a member boycott. 

"In my office, we attempted and worked to come to a timely payment resolution with UPA," Bone tells PrinceGeorgeMatters. "Recognizing the Marriott hotel hired them, at the end of the day, UPA is directly responsible for paying our local contractors. UPA did not pay our members in a timely manner. In fact, what they did, is came back to all of the members and said 'What we need you to do is reduce your contract price on a certain percentage amount.'"

The percentage amount supplied to the NRCA by the Mariott Hotel and confirmed by NRCA members, is allegedly one per cent all the way to 30 per cent. 

 

Bone says there are two main issues: the UPA did not allegedly give prompt payment to local suppliers and contractors as well as informing contractors and suppliers to reduce the costs agreed upon in contracts, and if not accepted, they would need to take the issue to the courts. 

"This is a long-standing issue," Bone says. "We've attempted to resolve it. The members that have been impacted, some have been paid but we are unaware of who has been paid and how much because repeated requests by NRCA have been unanswered in terms of that information."

He adds there are close to 15 local, sub paid contractors, suppliers and consulting services, at the time of the issue, were allegedly owed close to $1.8 million. 

"Our position we're taking at NRCA, we've been attempting resolving this issue over a very long period of time," he says. "UPA has not been forthcoming. In our view, they've been lax in their diligence to pay our local contractors according to the contracts. It's very, very important to point out that all of our contractors, all of our suppliers have met their contractual requirements." 

9023450_web1_171025-WLT-ScottBoneNorthern Regional Construction Association CEO Scott Bone. (via Northern Regional Construction Association)

Bone once again reiterated the main issues, stating some contractors and suppliers have been paid, but it took longer than the NRCA says it should take and the fact that UPA allegedly asked for a decrease in the contractual prices. 

"The general rule of thumb in our industry is to pay our contractors within 30 days after substantial documentation has been provided," he says. "Our members have met all of the requirements of the contracts, so UPA again has been creating significant delays in payment or informing our members because they lost money on the project, you now have to reduce your contract price. It's unethical, it's unprofessional and it does not comply with the contract."

Bone says the association reluctantly considered the boycott of the Courtyard Marriott, stating they want the hotel to be nothing more than successful. 

"It's a great addition to our community," he says."But  NRCA has been working with UPA  and the Marriott for a very long time, trying to keep his information internalized, we didn't want to go to the media but I represent 250 member firms in the community and my members are saying 'Why are we supporting the Mariott when it can't in fact even pay its bills?' and the Marriott is essentially directly responsible for the actions with UPA. They had an opportunity to assist the NRCA and fix this, but unfortunately, it hasn't happened."

Bone also tells PrinceGeorgeMatters, he wants the public to know, a local developer and one of the owners of the Mariott Hotel in Prince George, has been beyond helpful to the NRCA and their efforts to get the compensation they allege they have not received. 

"He has been extremely supportive of the NRCA in our attempts to solve this thing," Bone says. "There's a number of partners outside of the country but Rod (McLeod) has been the key supporter in this, working with us and trying to get us fixed. It's important to not only communicate the impacts but also communicate the positives that have occurred out of this."

PrinceGeorgeMatters did reach out to UPA on Friday (March 1). UPA President Richard Allen said he was currently unavailable for comment but will speak to media on Tuesday.