Millwork contractor disputes default

A trades contractor is adding its name to the list of people who have liens against the Westview Elementary School property after being told that its contract was in default.

“We are in a position to put a lien on the place and if we can’t come to an amicable agreement then we’ll just go to court,” said Gary Nikolai, president of Nico Industries, Inc.

New Westminster-based Nico Industries, the millwork trades contractor on the new school construction project, was hired to supply and install all of the cabinetry in the school and some of the wall panelling and sound absorbing ceiling slabs.

The Peak reported last week that 10 finishing carpenters, who were contracted by Nico Industries to work on the elementary school project, had filed liens against the property after not being paid three weeks’ wages. The article stated the company’s contract included wood floors, but it did not. Nikolai also said there were enough materials on site for his crew to keep on working.

Nikolai said he received an email from general contractor Yellowridge Construction on January 15 that his employees had walked off the job and his contract was in default.

“Nobody phoned me to tell me about it,” he said. “They should have given us the opportunity to make whatever correction they wanted.”

Nikolai disputes the allegation that his workers walked off the job. “Our guys didn’t walk off the site,” he said. “They left because they were told to do so.”

Yellowridge spokesperson Eileen Hawboldt was reluctant to comment on the situation “because it might affect a future legal proceeding.” She said that Yellowridge didn’t deal with Nikolai’s crew directly and wouldn’t have the right to fire Nico Industries’ workers.

“As far as we are concerned we were trying to make it work with him and then he defaulted and everything unrolled from there,” said Hawboldt.

Nikolai claims that it is Yellowridge that has defaulted on the contract when it didn’t follow the agreement’s terms.

Nico Industries’ carpenters had been paid through an arrangement with Yellowridge called joint chequing. Nico Industries would write up payroll cheques and send them to the workers and then Yellowridge would cover payroll by sending Nico Industries money for the total amount.

Nikolai described his company as “out of cash,” after not receiving payment on the project for months.

According to Nikolai, Yellowridge decided to change the payroll agreement and pay the Nico carpenters directly from the beginning of January. He said he didn’t have any problem with that. “It’s not very common, but it does happen and that’s what we’ve had to do,” said Nikolai.

Instead of being given paycheques on January 15, the Nico carpenters received packages of forms to file employment standards claims. Later, they were offered some financial assistance by Yellowridge and School District 47 in the form of bridging loans.

Nikolai has been in the cabinetry business for 45 years. “We all run into a problem once in a while,” he said. “The best way to resolve it is to get together to deal with it.”