Bid Protests Filed Could Cause Substantial Delays In Dam Project

On behalf of The Law Office of Lynnette Ariathurai, A Professional Corporation posted in Contract Disputes on Wednesday, December 20, 2017.

Sometimes, a California business might not like the way a particular bid and subsequent contract plays out, especially when the party believes it has received the short end of the stick. Such seems to be the case where the U.S. Army Corps of Engineers and a construction company is concerned. Kiewit Infrastructure West Coast Corp. has filed a complaint against the U.S. Army Corps of Engineers regarding a multimillion dollar dam project that was expected to have been underway by now but isn't, due to the contract dispute.

In September, the USACE announced its decision to award the more than $200 million dam construction project to a group comprised of three companies. Since then, the contract dispute that has arisen includes two separate bid protests filed by Kiewit, although spokespeople from the corporation have refused to elaborate regarding the details of the complaints. A USACE spokesperson said the it is looking forward to beginning construction in 2018 and does not anticipate further delays.

The award to work on the dam construction project reportedly contains a special clause that offers an option to work on an auxiliary dam. Were the option to be exercised, the contract would be worth approximately $40 million more. All told, construction completion is estimated at five years.

Depending on the outcome of the current complaints on file, the 2022 projected finish date could be pushed back even further. When hundreds of millions of dollars are at stake, those trying to protect their interests would naturally desire as swift and agreeable a solution as possible to any obstacles that arise. This is why most California contractors and other businessmen rely on experienced legal representation when a particular issue needs to be resolved through litigation.

Posted in Contract Disputes

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