HART announces tentative settlement with contractor over costly delays
HONOLULU (HawaiiNewsNow) - Rail officials say they’ve settled their largest-ever change-order dispute.
Ansaldo Honolulu had a $574 million contract to build the electrical system and facilities and maintenance buildings.
The company blames the city for delays in scheduling timelines for the project, which resulted in Ansaldo to perform certain tasks later than anticipated.
A year ago, the company verbally asked for an extra $400 million due to legal issues and project delays. Ansaldo later filed a formal claim for $275 million.
On Monday, rail officials say they’ve settled on $160 million to resolve the dispute.
“This is a very good deal. One of my main jobs is to look after the taxpayers and look after the public interest,” HART CEO Andrew Robbins said. “We had to recognize that the project has been delayed and there are legitimate claims by the contractor.”
HART claims that the payments to the contractor are part of the Project’s allocated contingency and will not add to the Project’s cost projections.
The rail board will vote to approve the settlement on Thursday.
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