The Municipality of Chatham-Kent has fired a construction company hired to build a three-storey affordable housing complex in Chatham after the company failed to meet its contractual obligations.
The municipality said that the contract with BECC Construction Inc. for 27 affordable housing units at 101 McNaughton Avenue West in Chatham has been terminated after it failed to meet construction deadlines.
Municipal officials said the project was originally scheduled to be ready for occupancy by early 2023.
Chatham-Kent Chief Administrative Officer Michael Duben told CK News Today it was more difficult to move on from this builder to find a new one because the modules are proprietary technology and most builders don't have the modular parts to finish the job.
Chatham-Kent Manager of Corporate Communications Eric Labadie told CK News Today that administration tried to work with BECC over several months to see the project completed, but after seeing limited progress, it became clearer that the best approach was to terminate BECC’s contract and seek a new company to finish the housing project.
The municipality noted construction of the new affordable housing complex will be resuming in the coming months under the direction of a new company.
"BECC has not met contractual obligations, and as a result, Chatham-Kent has ultimately decided to end BECC's right to continue the contract," wrote municipal officials in a news release on Thursday afternoon. "Construction work will be resuming once a Request for Proposals has been released and a qualified company is selected to take over the remainder of the project."
The municipality said it's committed to delivering "much-needed housing services" throughout the community, including affordable housing opportunities.
"Once a successful bidder is chosen, they will assess the project and present administration with a final revised timeline for completion," the release said.
The $8.3 million complex has fabricated modules that were shipped to the site for assembly on a foundation.