A demolition subcontractor on the Winnipeg Police Service headquarters project said he fought to get paid for his work and is still suffering from related losses.
While testifying at a public inquiry into the project Tuesday, Tiger Ventures Demolition owner Sheldon Pitz said he billed main contractor Caspian Projects $2.3 million for his company’s work. However, he said he was never fully paid and lost more money due to extra work he was instructed to complete without compensation.
“I lost money … I lost everything that I had. Plus, I had gone and mortgaged my house again. I would say that when this job was over, I was almost a million dollars in the hole,” said Pitz.
The public inquiry into the Winnipeg Police Service headquarters construction project continues today with testimony from a subcontractor who did demolition work at the site. (Mikaela MacKenzie/Free Press files)
“I’ve still got a lot to pay off, too. It’s not over yet,” he added.
In 2021, Tiger Ventures filed a lawsuit against Caspian and its owner Armik Babakhanians. The suit alleges Caspian claimed it had a maximum budget of $2.5 million for the demolition work but billed the city for at least three times that amount. The allegations have not been proven in court.
Problems with the headquarters project at 245 Smith St. have plagued the city for years and sparked multiple legal battles. An external audit found the project had been severely mismanaged. Initially expected to cost $135 million, its price soared to $214 million, when flood damage and some late security upgrades are included.
On Tuesday, Pitz said he was initially very excited to get the HQ contract, since it would be his company’s biggest job yet.
However, he testified that getting actual payments from Caspian was “like pulling nails.”
The inquiry viewed a document that indicates Caspian billed the city for $10.15 million of demolition work it credited to Tiger, which Pitz testified his company was not paid.
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“I didn’t get (any) of it … That’s not my invoice,” he said.
Pitz said he never saw other companies doing demolition work at the building.
The city launched fraud and construction-deficiency lawsuits over the HQ project. A settlement approved in March 2023 calls for the city to receive $23.5 million if paid within 36 months. If the payment is not made within 36 months, the city will ask the Court of King’s Bench to order that it be paid $28 million. That deadline will be reached on March 24.
joyanne.pursaga@freepress.mb.ca
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Joyanne is city hall reporter for the Winnipeg Free Press. A reporter since 2004, she began covering politics exclusively in 2012, writing on city hall and the Manitoba Legislature for the Winnipeg Sun before joining the Free Press in early 2020. Read more about Joyanne.
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