The fight over work at the Whistle Bend subdivision is headed for a showdown in Yukon Supreme Court.

At $250 million, it's the biggest construction project the Yukon Government has ever done. But part-way into the project, a record-setting lawsuit looms.

The Whistle Bend lot before much of the construction. The contractor claims he has not been paid for work done, while the Yukon government claims he is guilty of bullying, intimidation and slander. (CBC)

Doug Gonder's Norcope Enterprises claims the government owes it millions of dollars for extra work it performed but was not paid for.

Lawyers for the Yukon Government have now counterclaimed, accusing Gonder of bullying, intimidation, and slander.

They say Gonders’ $17 million contract was never completed, and Whistle Bend streets and sidewalks will have to be dug up and resurfaced just to re-align misplaced water and sewer piping.

The lone occupied house currently on the Whistle Bend property. (Vic Istchenko/CBC)

Claims by both sides are so numerous that the Yukon Supreme Court has scheduled a 12 week trial in spring of 2014 to hear the arguments.

Meanwhile, water and sewer services for Whistle Bend's single resident were turned on last week.

City managers say it will cost about a $250,000 a year to operate.