Nova Scotia·NewThe municipal owners of the Rath Eastlink Community Centre have been ordered by the Supreme Court of Nova Scotia to pay the general contractor more than $1 million plus interest. Company and building owners have been in a dispute since 2014Luke Ettinger · CBC News · Posted: Nov 04, 2025 2:57 PM EST | Last Updated: 33 minutes agoListen to this articleEstimated 4 minutesThe Rath Eastlink Community Centre is located in Truro, N.S., and jointly owned by the town and Municipality of Colchester. (Luke Ettinger/CBC)The municipal owners of the Rath Eastlink Community Centre in Truro, N.S., have been ordered by the Supreme Court of Nova Scotia to pay the facility’s general contractor more than $1 million plus over a decade’s worth of interest.Since 2014, the Municipality of Colchester and the Town of Truro have been in a dispute with Edmonton-headquartered PCL Construction about who was responsible for project delays that led to an extended construction period for the community sports complex.The municipalities in 2009 selected PCL to oversee the project, which initially was proposed with a budget of $30 million. But that figure rose to just over $41 million when the contract was signed and by the time the project was completed in 2013, it had ballooned to more than $48 million.PCL claimed it was entitled to a contractor’s fee top-up due to changes to the project, while the municipalities claimed the general contractor and its subcontractors caused delays.In his decision, Justice John Bodurtha noted the project’s public steering committee had very little construction experience. He said meeting minutes show PCL suggested ways to reduce costs, advised on issuing tenders to avoid delays and cautioned that the project appeared to be going over budget.“The evidence shows that PCL tried to meet the satisfaction of the Owners to make sure the Project was done on budget and on Time,” the judge wrote. He awarded PCL an additional contractor’s fee of $1.15 million, staff costs for specified periods after the contract was extended in January 2013, and the amount for a cheque of about $120,000 that was certified but never provided to the construction company — plus more than a decade of interest.The town and county are also on the hook for the company’s legal fees.The municipalities claimed delays occurred because PCL failed to manage subcontractors adequately. They filed counterclaims for damages for a number of project deficiencies that included the stairs in the arena and pool viewing area that do not meet national building code standards. Bodurtha toured the facility at the request of the two sides in the dispute, with a particular focus on the stairs. A patron of the RECC, who fell when climbing the stairs in the arena, filed a lawsuit against the owners in 2018. The judge noted in his mid-October decision that the suit has since been withdrawn for unknown reasons.Bodurtha said there was no evidence the fall or injury was caused by a building code violation that amounted to a matter of millimetres. He awarded the municipal owners nominal damages for the cost to install handrails and signage to warn patrons to exercise caution using the steps. “In my opinion, the safety risk is speculative and the evidence supports the stairs are usable as is,” he wrote. “As such, I do not see remediation damages as necessary in this case.” The Supreme Court decision comes as Truro looks to review capital projects after recent recreation projects faced cost overruns.The municipalities also have to decide on an operating agreement for the RECC.Last week, the Municipality of Colchester ended a deal with the Central Nova Scotia Civic Centre Society, citing contractual issues. Earlier this year, the citizen volunteers on the society’s board were dismissed and replaced by interim members appointed by the town and county. The mayors and senior staff say the facility will continue to operate as normal and no staff changes are anticipated during a 90-day transition that started last week. “The board, which is comprised of both elected and senior management representatives from the Municipality and the Town in addition to community volunteers, has not yet had an opportunity to meet and discuss the implications of the Municipalities’ decision,” said a statement from the society’s executive committee on Friday. The 12-year-old RECC is in need of a new heating and cooling system, and work is also required to address roof leaks and other minor repairs. In 2017, the municipalities and federal government put up more than $500,000 to fix a fog issue in the NHL-sized rink. MORE TOP STORIESABOUT THE AUTHORLuke Ettinger is a reporter with CBC Nova Scotia based in Truro. Reach him at luke.ettinger@cbc.ca.
N.S. Supreme Court orders Truro, Colchester to pay RECC contractor
