Contractor fired from Parry Sound school project planning legal action

The embattled Near North board came under fire after a new $58 million JK-Grade 12 high school in Parry Sound didn’t open as scheduled in September. Parents weren’t informed until August and high school students had to start the year with remote learning. (File)

Saying it has been unfairly blamed for construction delays, Van Horne Construction Ltd. is taking legal action after the province terminated its contract to build the $58 million JK-Grade 12 school in Parry Sound.

It’s the latest twist in a controversy surrounding the Near North District School Board, which has been taken over by the province.

The Parry Sound school was supposed to open last September, but parents were informed in August that it wouldn’t be ready on time.

Students in high school were forced to start the school year via remote learning before the former high school was ready to accommodate students.

Angry parents and students protested, and the Ministry of Education launched an investigation, which found that the school board failed to properly monitor the project and failed to communicate with parents in a timely manner when the opening was delayed.

Last week, the Ministry of Education announced it was terminating the contract with Van Horne.

“This decision followed an extensive period of review and engagement, including formal notices of default and opportunity for the contractor to resolve the outstanding concerns of NNDSB,” said a letter to parents dated Jan. 14.

However, the law firm representing Van Horne issued a letter of its own Jan. 20, saying the firm “strongly disagrees with the decision by Ontario’s Minister of Education, Paul Calandra, to direct the termination of our contract on the Parry Sound JK–12 school project.”

“This decision is unjustified, unsupported by the facts, and fundamentally unfair, given the extensive and well-documented governance and oversight failures by the board already identified in the administration of this project,” the letter said.

“From the outset of the Parry Sound project, Van Horne met its contractual obligations and acted in good faith. We raised concerns early and repeatedly about issues beyond the contractor’s control, including permitting challenges, governance breakdowns, decision-making delays and structural problems within the project’s oversight and approval process.”

“These issues were well documented and predated any claims now being made regarding contractor performance,” the letter added.

The problems with the project were with the school board, Van Horne said, not with the construction company, which has a long record of successfully building public projects.

“Since 1973, we have delivered complex public, institutional, and community infrastructure projects with professionalism, accountability and care,” the letter said.

“Our reputation has been built on doing the work properly, standing behind our commitments, and working constructively with owners, consultants and public authorities, even under challenging conditions.”

By singling out Van Horne, the province “misrepresents the root causes of delay and dysfunction on this project.”

“Van Horne categorically rejects any suggestion that our work, conduct or capability warranted termination,” the letter said.

“By the end of 2025, construction was substantially complete, having received the required regulatory approvals necessary to advance towards occupancy. Despite Van Horne having completed the approved work necessary to advance the school towards occupancy, it has not received payment from the board since September, a matter that forms part of the broader contractual and legal issues now under review.”

Terminating the contract now risks more delays, Van Horne said.

“As a result of the province’s actions, Van Horne will be pursuing legal remedies to protect the company’s reputation, its contractual rights and the interests of its employees and partners,” the letter said.

“Van Horne shares the community’s desire to see the final stages of the school’s construction completed and have the students back in their classrooms, where they belong. Accountability matters. Accuracy matters. And fairness matters.”

Messages from CTV News seeking comment from the Ministry of Education on Tuesday were not immediately returned.