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Kelowna Company Shuts Down $150 Million Construction Project

A Kelowna based company has been slapped with almost $80,000 in fines after working illegally in the United States.

Drywall company Clayton Wall & Ceiling Systems Inc. was sub contracted to work on a $150 million, 45 storey construction project in San Diego but were shut down on Friday because the company did not have a license for the state of California.

Pinnacle Towers Work Site (Photo Credit:Department of Industrial Relations)

The primary contractor Pinnacle International Development Inc. contracted Clayton in August 2013 for the $6.34 million drywall job. The drywall company began work in January 2014 without completing the licensing process and during a surprise inspection of the work site by the California Department of Industrial Relations it was issued a citation worth $15,000.

“When it comes to contracting without a license the law is very clear,” said Contractors State License Board Registrar Steve Sands. “You cannot enter a contract to work, or actually do any work until you’re licensed. There’s no gray area here.”

A section of the $150 million construction project in San Diego (Photo Credit:Department of Industrial Relations)

Clayton’s license application is on-hold until the fines are paid or until an appeal is heard. That will delay the company’s ability to work on the San Diego project, or any other project in the state. Pinnacle may face administrative action for contracting with a non-licensee.

Clayton’s was also issued another fine of $64,000 from the Labour Standards Enforcement division. The mega million dollar project is now on hold until the company either pays up or files an appeal.

According to reports in the U-T San Diego the British Columbia trade association said they could not locate the firm in Kelowna. The Southern Interior Construction Association has also confirmed with KelownaNow Clayton’s is not registered with them nor have they heard of the dry wall company.



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