Two new hospitals in Watson Lake and Dawson City will not be finished on time, says the Yukon Hospital Corporation.

The two hospitals were originally scheduled to open in May.

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The Yukon Hospital Corporation said Friday two new hospitals in Watson Lake and Dawson City will not be finished on time. (CBC)

Both projects have been dogged with delays ever since the builder, Dowland Contracting, ran into financial problems earlier this winter.

Craig Tuton, who chairs the Yukon Hospital Corporation board, said even in hindsight, he can't say how the Dowland contract might have been handled differently.

"What happened was totally unforeseen," he said.

"Nobody could have anticipated or expected that and all we can tell you is they defaulted with us in the contractual agreement with us."

The total cost for the two community hospitals is now budgeted at just under $58 million.

A Whitehorse contractor, TSL Construction, has been hired to complete the unfinished work at both hospitals.

Officials say costs are being covered by Dowland’s bonding company, which insured completion of the projects.

The Watson Lake hospital is now scheduled to open sometime later this summer, and the Dawson City hospital is expected to open in the fall.