Hospital named in lawsuit

Author: Frank Matys

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Frank Matys

Orillia Soldiers' Memorial Hospital is included in a lawsuit filed by subcontractors against the general contractor in the hospital's expansion.

Soldiers’ Memorial Hospital has been named in a legal action with contractors involved in the redevelopment of the local facility.
In a statement provided to Orillia Today, the hospital said that, during the course of the recent expansion project, “certain subcontractors made significant claims against the general contractor for cost overruns.
“As a result, the general contractor has included the hospital as a third party claimant, should the subcontractors’ claims result in judgments against the general contractor, in order to mitigate the general contractor’s potential liability,” the hospital added in its statement.
The general contractor responsible for overseeing the more than $83 million expansion and redevelopment was PCL Constructors Canada Inc.
Speaking with Orillia Today this week, vice-president and district manager Kevin Skinner said
those involved were working towards a resolution.
“There are two third-party claims against the hospital, and we are working through the issues with the hospital executives right now,” Skinner said in a phone interview. “We hope to get them satisfactorily resolved. Unfortunately, they have had to go this far.”
Skinner declined to comment on the nature of the litigation and what prompted it.
“We are not at liberty to say anything about that,” he added.
The hospital also declined to elaborate on the action.
“Given that the matter is in litigation, OSMH is limited in its ability to provide further comment,” the statement added. “It is not, however, unusual for contractors to make claims for extra money on large construction projects.
“The hospital is aware of the claim and will be receiving further legal advice as the matter progresses,” it said.
Officials said it was unknown how much the hospital stood to lose, if indeed it is ordered to pay anything.
“The amount of loss, if any, to the hospital is undeterminable at this time,” the hospital added in its statement.