With a focus on responsible fiscal management, the Provincial Government is committed to ensuring that major infrastructure investments are delivered in a way that is affordable, sustainable and achieves the best possible outcomes for the people of Newfoundland and Labrador. As such, the current construction contracts for the Martin Gallant Building redevelopment in Stephenville Crossing and the new K‑12 school in Cartwright have been cancelled.

This decision follows a detailed review of both projects, which identified significant risks related to cost escalation, delays, design issues and site conditions. While both projects are in early stages of construction with approximately six per cent of the Cartwright school completed and 19 per cent completion of the Martin Gallant Building redevelopment, they are already experiencing significant challenges, with work disruptions, growing risks of cost overruns and delays exceeding one year. The Provincial Government will now proceed with a reset of both projects to ensure better value for taxpayers and more predictable project delivery.

By cancelling and rescoping the projects, the Provincial Government will:

• Reassess project scope to ensure alignment with core needs.
• Redesign elements to improve cost efficiency and constructability.
• Explore alternative delivery models, such as design-build or modular approaches.
• Establish clearer timelines and more predictable budgets.
• Re-procure the projects under revised terms.

For the Cartwright School project, this reset will allow the provincial government to explore innovative options such as prefabricated or modular construction, which could reduce site-related risks, improve delivery timelines, and provide greater cost certainty for a project in a remote location. The existing Henry Gordon Academy in Cartwright will also be assessed for immediate improvements to the school property for students and staff such as the provision of new technology/equipment.

Similarly, the Martin Gallant Building redevelopment will be reassessed to ensure the most efficient approach to delivering accessible government services.

The Provincial Government remains committed to both projects. Revised plans, timelines, and procurement approaches will be developed in the coming months, with a focus on delivering modern, functional, and cost-effective infrastructure.

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“While cancelling contracts is not a decision we take lightly, continuing as planned would expose the province to even greater financial risk. Acting now allows us to limit costs and reset these projects on a more stable and cost-effective path, while continuing under the existing contracts would likely result in substantial additional costs and prolonged timelines, placing further strain on public finances. Our goal is to get these projects right.”
Honourable Barry Petten
Minister of Transportation and Infrastructure

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