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Winnipeg’s ongoing struggles with its largest sewage treatment facility have escalated into a legal dispute. A Nova Scotia-based infrastructure firm, Stark International Inc., has filed a lawsuit against the city, alleging mismanagement of a repair project that led to the cancellation of its contract.
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The company claims it is owed nearly $95,000 and is seeking additional damages.
The lawsuit, filed last week in the Court of King’s Bench, revolves around repairs to power transformers at the plant, a critical component in wastewater treatment. Stark International, known for its expertise in transformer repair, was awarded the contract in 2022, valued at over $108,000 before taxes. The project aimed to address essential upgrades, including transformer repairs and roof replacements. Despite beginning work in May 2022, delays and disputes over project management soon arose.
Stark alleges the city’s contract administrator lacked the necessary expertise and failed to provide essential technical information in a timely manner. The firm claims repeated delays in receiving clear instructions hindered progress. Custom materials required for the project were ordered, manufactured, and shipped, but further complications arose when Stark recommended postponing roof removal to avoid weather-related damage. A stop-work order from the city followed, and the contract was terminated in December 2022. Stark argues the termination was unjustified and accuses the city of breaching its contractual obligations.
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This legal battle unfolds amid broader challenges at the north end plant. The facility has been undergoing significant upgrades since 2003, originally intended to reduce harmful substances in treated water and improve the health of Lake Winnipeg. These upgrades, long overdue, have faced repeated delays and skyrocketing costs. The second phase of the project, initially budgeted at $553 million, has seen its price tag nearly double to $1.035 billion, leaving the city scrambling to secure additional funding.
Mayor Scott Gillingham recently described the situation as a crisis. With limited capacity left to process sewage sludge, the need for a new biosolids facility is urgent. Funding negotiations with provincial and federal governments are ongoing, but the legal and logistical hurdles surrounding the plant highlight the mounting challenges Winnipeg faces in modernizing its infrastructure.
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