The government says the Crown corporation will conduct the work until the Labrador-based sub-contractor can show it is complying with health and safety obligations.
No injuries were reported as a result of the safety concerns.
The main contractor at the site, Astaldi Canada, says the temporary shutdown of the construction site in central Labrador resulted in excess water accumulating at the lower section of the hydroelectric pumphouse.
Astaldi says water is not affecting the integrity of the structure or the safety of workers at the site.
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