Manitoba construction company Penn-co Construction is reportedly suing the University of Manitoba for $2.6M over the Churchill Marine Observatory project. The lawsuit claims that the project, which Penn-co completed for the university, had inadequate design plans and project expenses that grew during the COVID-19 pandemic without additional compensation. “There is no lawful basis for the university’s retention of the benefit of the additional work without proper payment of the same,” reads the lawsuit. A university spokesperson said that “all legitimate and eligible costs to Penn-co have been paid. In addition, the university has a significant claim against Penn-co for deficient work that will be set out in our statement of defence and counterclaim.”