The City of Charlottetown is being sued for $46,747 by an architecture company alleging unfairness in how a contract to build a new fire station was awarded.
Chandler Architecture Inc. alleges there was a breach of contract, since the municipality's request for proposals said the work would go to the bidder with the "highest overall rating" when mandatory criteria were evaluated.
Chandler's lawyers say their client met all the requirements the city laid out, and the firm's proposal did receive the highest overall rating.
However, it didn't win the contract.
"On or about December 17, 2020, the defendant (City of Charlottetown) passed a resolution awarding the project to SableArc Studios Inc. in the amount of $328,000 plus applicable taxes," Chandler Architecture Inc. said in a statement of claim filed with the Supreme Court of Prince Edward Island this week.
"One or about December 18, 2020, despite receiving the highest overall ranking, the plaintiff was advised that it was unsuccessful in its bid for the project."
SableArc Studios Inc. had a lower ranking than Chandler, according to the statement of claim. Allegations made in a statement of claim have not been proven in court.
A few days after Chandler Architecture's proposal was turned down, the document says, owner William Chandler spoke with Charlottetown Mayor Philip Brown to discuss why his company had not won the work.
"The plaintiff was not provided with any explanation as to why its proposal was unsuccessful despite receiving the highest overall ranking of all the proposals submitted."
The city is being sued for the money Chandler spent in preparing its bid, estimated at $9,985, and the company's estimated loss of profit it would have earned on the project, amounting to $36,762.
The City of Charlottetown has not yet filed a statement of defence to respond to Chandler's allegations.
Charlottetown currently has two fire stations, but a third was approved in July of 2019 to better respond to emergencies in the growing municipality.