SHOULD DOWNTOWN MERCHANTS BE PAID DAMAGES?

SHOULD CONTRACTOR PAY DAMAGES TO SUFFERING MERCHANTS?

 WORK IS STILL NOT COMPLETE AFTER NINE MONTHS

It’s been nine months of delays — and Commercial Street is still not open to traffic. Why?

This project began last September. Since then, downtown merchants have been trying to run their businesses in what has become a construction war zone, with no end in sight.

The general contractor and the City of Nanaimo have been contacted for an explanation of this seemingly never-ending project. Look for their response in an upcoming VOICE of NANAIMO report.

A sudden flurry of activity occurred just in time for the June 8th parade, resulting in the installation of a controversial $118,000 graphic at Bastion and Commercial. But beyond that, progress has been inconsistent at best.

In most public construction contracts, there is a completion clause that binds the contractor to finish by a specific date. If that deadline is missed, liquidated damages — a daily financial penalty — typically apply.

Given the repeated delays and the severe impact on local businesses, it seems only reasonable that penalties be assessed — and that those funds be distributed to the merchants who have borne the financial burden.

Most public construction contracts include a completion clause backed by a liquidated damages provision. In the case of Commercial Street, a reasonable clause would have required the contractor to finish by March 15, 2024 — six months after the September 2023 start date — with a penalty of $2,500 for every day the project ran late without justification. These funds could then be redirected to support downtown merchants who have endured months of disruption and financial hardship. Such clauses are standard industry practice and are meant to protect the public from costly and avoidable delays.

One has to wonder: when the City asked residents to Reimagine Downtown, did anyone imagine this?