Contractor sues Ontario after Parry Sound school contract terminated, cites governance failures
Van Horne Construction is suing the province after its Parry Sound JK–12 contract was terminated. The company blames board governance and warns the decision could delay student return to classrooms.
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By Torontoer Staff
Van Horne Construction Ltd. has launched legal action after Ontario moved to terminate the company’s contract to build the Parry Sound JK–12 school, calling the decision unjustified and unfair. The contractor says the province wrongly blamed it for delays that stemmed from governance and oversight failures at the Near North District School Board.
The dispute leaves a partially completed school and a community waiting for clarity on when students will return to in-person classes. Van Horne says it met contractual obligations, raised documented concerns about permitting and decision-making delays, and has not been paid by the board since September.
Van Horne’s case and claims
In a statement the company said the province’s action, which followed a Jan. 14 announcement, misrepresents the project’s problems and unfairly singles out the contractor. Van Horne maintains that independent reviews and public reporting show the central issues were administrative and governance failures at the board level, not contractor performance.
This decision is unjustified, unsupported by the facts, and fundamentally unfair.
Van Horne Construction Ltd.
Van Horne listed several factors it says were beyond its control: permitting challenges, delays in board decision-making, and structural problems in the project’s oversight and approval process. The company says those issues were well documented long before the province cited contractor performance as the cause of delays.
Province and board response
Ontario’s Ministry of Education and the Near North District School Board have said the contract termination followed an extensive review that included notices of default and opportunities for the contractor to address concerns. The board was placed under provincial supervision in December 2025 after the ministry cited governance failures it said were affecting student achievement.
After careful consideration, NNDSB has determined that continuing under the existing arrangement would place the project’s successful completion and timeline at risk.
Paul Calandra, Minister of Education, in a letter posted to the board website
The board has said it will secure a new general contractor and is targeting a September 2026 opening for the school. The ministry did not provide an immediate comment to media requests about the lawsuit.
Impact on students and the Parry Sound community
Parents and students have already felt the consequences of the project’s delays. Parry Sound High School students were told one week before the start of the school year that classes would begin virtually because the partially demolished building was not fit for occupancy. Officials later indicated a Sept. 15 in-person return, which has not taken place.
- Board under provincial supervision, December 2025
- Van Horne says construction was substantially complete by end of 2025 and had regulatory approvals in place
- Van Horne reports it has not been paid since September
- Contract termination announced Jan. 14, 2026; board plans to hire a new contractor and aim for Sept. 2026 opening
Van Horne warned that removing the contractor at a late stage could further delay student occupancy and disrupt local families. The company said it intends to protect its reputation and contractual rights through the courts.
As legal proceedings are being initiated, Van Horne Construction will not be providing further comment beyond the attached statement at this time.
Leonard Finegold, senior counsel, Cambridge LLP
What to expect next
Litigation is now underway, and the legal process could affect the project timeline depending on court outcomes and the board’s ability to appoint a new contractor quickly. The board’s stated target is a September 2026 opening, but Van Horne and community advocates say replacing a contractor at this stage carries risks to that schedule.
For families in Parry Sound, the immediate reality remains remote learning until the construction and approvals are complete. The unfolding legal dispute adds another layer of uncertainty to an already delayed project.
Parry SoundeducationconstructionNear North District School BoardOntario government
