Heather Wright/The Independent

Lambton County has recouped some of its cash from the problem-plagued Maxwell Place Seniors housing unit. But a civil suit against the company hired to provide and construct the modular building, BECC Construction out of Ancaster, may not get very far.

BECC is bankrupt. 

The county sued the company, hoping to recover some the escalating costs for the project which started before the pandemic. The cost of the building has gone from $6.1 million in 2021 when federal and provincial governments announced $3 million in funding for the project to $11.2 million today. And seniors are still months away from moving in.

When the project was first presented to council, the modular units were expected to be a quick solution to the growing number of seniors seeking affordable housing. Because the apartments were made in a factory and then assembled on site, the construction time was expected to be fast. 

But the project was plagued with problems including slow supply chains, weather and buried water lines that weren’t on the original plan. Then, the foundation which had been poured at the London Road site didn’t fit the modules. 

That’s when the county got out of its contract with BECC made a claim for the security bond the company had posted. 

Lambton County CAO, Stephane Thiffeault says the insurance company paid out over $2.7 million “some time ago.”

The county also sued BECC to recover its additional expenses and losses due to “the former contractors failure to perform its contractual com

But whether the county will see any cash from that civil suit is in question after RBC called its loans and forced it into bankruptcy. In all, KPMG, the firm handling the action, says BECC was carrying almost $15 million in debt with the owner Ali Kerem Ozden faced more than a dozen lawsuits with claims of $61 million.

KPMG is now trying to sell the business, but it is not clear how much the sale or the liquidation of Ozden’s properties would generate. And civil actions would still have to be litigated.

“The impact of the bankruptcy on our claim remains to be determined,” says Thiffeault.

Lambton County is not the only southwestern Ontario community mired in problems because of BECC’s modular units. 

Monday, Chatham-Kent officials asked council for an additional $9 million to complete a housing project using BECC units.

The Halton Region is also suing the company after a failed project. 

Meantime, the completion time for the Sarnia affordable housing unit has been delayed until the end of the year. 

Melissa Johnson, manager of housing services, says the delay since the new contractor was brought on board stemmed from the modular construction. The latest delays were caused by deficiencies in window and door installations, fire rating as well as electrical and plumbing issues.

The county now hopes to bring seniors into the building by the end of 2025.