Renovations at Iqaluit's Qikiqtani General Hospital have hit a snag after the general contractor for the project abandoned the site and defaulted on the $36 million contract.

Monte Kehler, the hospital's director of support services, said there is a performance bond in place on the contract with NCC Dowland, so sub-contractors are still working to finish phase one of the project.

Kehler said the hospital will meet with the bonding company next week to talk about what happens next.

"If we do re-tender the contract, that has a potential to add a delay," he said.

"The sealift season is also fast approaching and if we don't have a general contractor in place, that could add a sealift season, which would add a year to the project."

Kehler said the hospital's main concern is the possible impact on clinical services. Some clinics and administrative services have been moved while the work is going on.  

Kehler would not say how much NCC Dowland has already been paid, but he said the company has only been paid for work completed.

One of the companies involved with NCC Dowland is Dowland Contracting. It recently ran into financial problems with two hospital construction projects in Yukon.

Those projects stalled, and have now been awarded to a different company.

CBC News contacted Dowland Contracting this morning, but a spokesperson said the company had no comment.