Taxpayers lost a half million on contractors’ cancellation fees paid by federal department and agencies, records show, according to Blacklock's Reporter. The figure did not include estimates from the Department of Public Works that declined to release all numbers..“This information is not systematically available,” the department wrote in an Inquiry Of Ministry tabled in the House of Commons. “It would require manual verification which is not possible in the time allotted.”.The department, the largest contracting agent in the country, since 2019 said it had cancelled 323 contracts approved for payment. Reasons included “default,” “convenience of the Crown” or “mutual consent,” wrote staff..Cancellations included an $11.7 million contract with Chandos Construction LP of Kanata, ON, “for convenience of the Crown,” a $515,944 contract with Canadian Maritime Engineering Limited of Dartmouth, NS for “default following an act of vandalism,” a $989,563 contract with Tower Engineering Group Limited of Calgary “by mutual consent” and $6,575 contract with Pricewaterhouse Coopers LLP of Toronto because “the supplier did not fulfill the obligation to complete the work on time.”.The figures were disclosed at the request of Conservative MP Dan Albas (Central Okanagan-Similkameen, BC). “How many contracts have been cancelled and what is the total amount paid in cancellation fees or penalties?” asked Albas..The incomplete accounting identified $529,853 in cancellation fees including charges that were unavoidable, said the Inquiry. A Crown bank, Farm Credit Canada of Regina, lost $6,481 it paid for a videoconference abruptly cancelled last September 19. The reason was, “the announcement of the national day to mourn the Queen’s death.”.The Canadian Centre for Occupational Health and Safety lost a $14,205 deposit on an ill-timed conference at the Westin Nova Scotian hotel in Halifax. The reason: The conference was to be held May 22, 2020 in the first wave of pandemic lockdowns..Other cancellation fees lacked detailed explanations. The National Film Board paid $120,705 on 80 contract cancellations. All were marked “COVID” or “re-evaluation of needs.”.The Canadian Museum for Human Rights lost $217,300 paid to a Winnipeg hotelkeeper, Inn at the Forks. “The value represented solely reflects the management fee the Museum agreed to pay at the Forks over a ten-year contract,” wrote staff. There was no explanation..Losses varied widely. The Canadian Intergovernmental Conference Secretariat lost $110,455 worth of deposits under 83 contracts. The Transportation Safety Board paid a single cancellation fee of $258.
