CH2M has reached a settlement with the Central Texas Regional Mobility Authority in a dispute that has delayed completion of an Austin, Texas, toll-lane project. The contractor had claimed that an 11.2-mile makeover of North MoPac Boulevard would cost $375 million—more than double the firm’s winning bid of $136.7 million, submitted in 2013. What began as a 20-month project in January 2014 stretched to more than four years, which the firm blamed on design delays related to a water-main relocation and other issues. CH2M also had written off $120 million in project losses, according to financial documents. The agency countered that CH2M bore responsibility for handling the problems, as its original bid was substantially less than both the agency’s original estimates and the next-lowest bidder. Following mediation, the authority agreed to pay CH2M $159.9 million for the project, on the condition that the firm drop all claims for additional costs. CH2M also must complete work and have new toll lanes fully operating no later than Oct. 27 or face additional penalties. The settlement brings total project cost to about $233 million, $30 million more than originally budgeted.
CH2M Settles Delayed Texas Road Project for Reduced Sum
October 4, 2017