The days of discussing business concerns over a quiet cup of coffee are over for a Leduc-based contractor who says he's still owed tens of thousands of dollars for work he did last year to build the new Tim Horton's restaurant in Lac La Biche.
Things have gone so far past the coffee-stage that Allen Morton even considered bringing in equipment to take back what his company spent last August to November installing at the restaurant — all of the paving.
AM Bobcat Services, Morton's company, built all of the parking and drive-through lanes around the Lac La Biche Timmies. He recently told Lakeland This Week that he could rip it all up in a few hours and salvage some for re-use on other jobs. He isn't going to do it — but he's angry and frustrated enough to think about doing it.
Ripping it all out is a bit of a donut reaction, he admits — it might be sweet, but it has a big hole in the middle of it; Morton doesn't want to hurt another business ... and he doesn't want to go to jail. But he's still angry.
"It's my material. I paid Skoreyko for the gravel. The asphalt cost me equal. I've paid who I owe — I want to be treated the same," he said. "They shouldn't have opened that Tim Hortons until all the contractors were paid."
Morton says his work was completed last November. Months later, he's was still waiting for about 30 per cent of the $200,000 he was promised in a signed contract with the Calgary-based consultant hired as the project's general contractor. Morton has offered to come back when the weather warms up to fix and "rough spots" that might need work, but he's still out more than $60,000 on the job, and he's had to take out personal loans to pay companies he used on the job.
Morton says he hasn't been the only contractor with payment frustrations. He says several others have allegedly been waiting for final payments on the work they did on the new building. One contractor reportedly put a lien on the building's title until his local trades company was paid, another has contacted Morton to say they too had considered ripping out their materials from the national-brand coffee house. Morton has been meeting with local contractors on a regular basis over the last several months. He has also been sending emails, making phone calls and has even visited the offices of everyone he can think of along what he said is a long chain linked to the project
Under the Tim Horton's global corporate banner, there is an Ontario-based firm, Canadian Commercial Group of Companies, that is responsible for land and building sales and construction. That company, says Morton, hired a Calgary consultant to tender out the Lac La Biche job. In all, Morton has paperwork that shows $2.2 million was given to Nolan Projects by Canadian Commercial to hire contractors. At the end of the Tim Horton's chain, is the franchise owner. The owner of the Lac La Biche franchise, as of recently, does not own the actual 2,700 square-foot building, which continues to be listed for sale with a price tag of $2.8 million.
Morton says he has spoken directly to the local franchise owner, and he knows it's not their fault that his invoices haven't been paid. He also knows that digging up the asphalt would only hurt the franchise owner and the customers.
Going to the media, he said, is a last resort. He just wants his money.
One more month
When the Lac La Biche Post newsroom contacted Calgary-based consultant Daniel VanDerWerff, the owner of Nolan Projects, he freely admitted that at least five per cent of the overall payments to contractors hadn't yet been distributed for the Lac La Biche job.
VanDerwerff said he is aware of the "rumblings," and admits there is a "gap" between the project's budget and the actual final costs. Those gaps came from unanticipated cost increases in products and services, transportation costs and other supply chain increases that have taken place over the two years the project has been in the final planning stages.
"It took us two years to get to the point where we thought it was realistic. When the costs start to flow in, it always costs more. I think we did a great job under the circumstances," he said, adding that there are ongoing discussions between his office and the developer to find those additional costs.
"We are working diligently with the developer at finding a resolution on some of that gap... I can also say that over 90 per cent cent of all costs of that project have been paid out," he told Lakeland This Week, acknowledging local contractors are still waiting for full payment. "There is a small grouping of sub-trades that are owed some money... and everybody will be paid at the end of the day."
At the end of which specific day that will be, said VanDerwerff, will depend on the continuing discussions he is having with his developer and also when some outstanding deficiencies and "corrective action" are completed by contractors who have worked at the site.
Describing his own client as being "fantastic and fair," VanDerwerff said he expects to solve the remaining money issues without much more concern. While those discussion continue, he hopes that cool heads prevail.
"The impact sometimes of these tight budgets makes some people anxious, and some people can overreact in my opinion," he said, adding that cost-overruns and delays are unfortunately sometimes part of doing business. "The project cost was over-budget, and that's just a fact ... it's a position you often get into. It's unfortunate, but it's a reality... as money comes in for us, we pay it out as quickly as it comes in."
VanDerwerff said that as much as $45,000 was recently paid out to contractors waiting for payment.
Calling it a "team effort," once all deficiencies are addressed, he expects a 30-day window for the final payouts.
Until then, says Morton, he will continue to do what he has been doing for months... have another cup of coffee, and wait.
Calls were directed to Canadian Commercial Group of Companies and the Tim Horton's corporate administration from Lakeland This Week, but responses were not received.
The Lac La Biche franchise location is one of the latest in a roster of approximately 3,600 locations across Canada. According to the corporate site, Ontario leads the way with more than 1,800 locations. The new Lac La Biche Timmies is one of about 400 in Alberta.
