The developer of a 14-storey residential tower on the corner of Ellis Street and Clement Avenue in downtown Kelowna, B.C. ran into issues with some of the local contractors they used, according to recent court filings.
In civil lawsuits filed in early June, GSL Communities (Ellis) Limited Partnership allege their drywall and railing contractors performed shoddy work on the Ellis Parc building, leaving the developer to pick up the costs of fixing the issues.
Construction of Ellis Parc began in 2018 and it was completed in 2020. It's one of several towers that have gone up in Kelowna's core in recent years as city council looks to increase density in the area.
GSL had agreed to pay Kelowna's Tri-City Dryco more than $3.1 million to perform various drywalling and ceiling work in the newly constructed building. GSL had also entered into a contract with Kelowna's JK Glass in the amount of $357,440, to install balcony railings, gates, handrails, interior mirrors and exterior and interior glazing in the building.
GSL alleges both companies' work contained “numerous defects and deficiencies," which left GSL with the bill to complete the work and repair the “deficiencies." GSL also claims it suffered "increased costs caused by delays.”
Tri-City's alleged deficiencies included cracking in the drywall and ceilings, incomplete walls, bulkheads and ceilings, missing drywall, bowed walls, punctured walls, visible drywall joints and more.
On June 26, 2020, after GSL says Tri-City took no steps to address the issues, GSL terminated its contract with Tri-City. GSL says they had already paid Tri-City about $2.975 million when they terminated the contract.
GSL claimed in a separate court filing in September 2020 that they had spent close to $150,000 addressing Tri-City's alleged deficiencies, and they expected to spend another $25,000-$40,0000 to finish the work.
GSL also terminated its contract with JK Glass, on Sept. 3, 2020. GSL claims JK Glass' work included improper, unfinished and missing welds, improper loading requirements and "work completed without proper welding certificates."
In both cases, GSL is seeking general damages for breach of contract, along with interest and the costs of the legal action.
None of GSL's allegations have been proven in court, and neither JK Glass nor Tri-City Dryco have filed responses to GSL's notices of civil claim yet.
Ellis Parc contains 91 units, and one-bedroom apartments in the building began at $568,500 when they first went on sale.