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Contractor Settles Row over Termination

Monday, May 2, 2016

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After being kicked off a $1.4 billion expansion project for the Washington State Convention Center and filing a lawsuit, joint venture Skanska-Hunt Construction Group reports the issue has been “amicably resolved.”

Financial terms of the settlement—with the WSCC officials—were not disclosed.

In March, WSCC terminated Skanska- Hunt as the general contractor/construction manager of the downtown Seattle project, noting that the joint venture “wasn’t the right fit.”

Washington State Convention Center
Cliff via Flickr / CC By 2.0

Current facilities opened in 1988 and are being expanded in order to host larger national conventions, according to officials.

Blindsided by the move, Skanska-Hunt sued, alleging that the termination violated the parties’ agreement and state regulations.

News of the settlement comes almost two weeks after Skanska-Hunt won an injunction to prevent WSCC from hiring a new GC/CM before trial.

A Resolution

The settlement now means WSCC is free to restart the bidding process using a different bidding method or choose one of the other two original bidders—Mortenson Construction with PCL Construction Services or Clark Construction with Lease Crutcher Lewis—to serve as GC/CM, reports relate.

Officials had initially selected Skanska and Hunt Construction Group in June 2015.

In a statement on the settlement, Chris Toher, Skanska executive vice president and general manager, said that the resolution “recognizes the valuable services our team provided over the past nine months.”

Further, WSCC Board Chairman Frank Finneran commented: “WSCC decided to terminate the preconstruction process for convenience because design and budget issues led us to conclude that we would not be able to negotiate a satisfactory maximum allowable construction cost for the project.

“As Skanska-Hunt performed during the preconstruction process, WSCC came to realize that taking a step back to re-evaluate aspects of the schematic design would benefit the project.”

The Project

Designed by LMN Architects, the expansion project will essentially double the current convention center, adding around 250,000 square feet of exhibit space, 120,000 square feet of meeting room space and a ballroom, reports relate. Also said to be included in the project is a 30-story residential tower with 428 units, a 16-story office building and new retail and public spaces.

Current facilities opened in 1988 and are being expanded in order to host larger national conventions, according to officials. Construction on the expansion is set to begin in 2017 and finish in 2020.

The Pine Street Group is serving as development manager overseeing the project.


Tagged categories: Business matters; Commercial Construction; Laws and litigation; Lawsuits; Maintenance + Renovation; North America; Partnerships; Renovation

Comment from jim dolan, (5/2/2016, 10:45 AM)

Typical of Seattle and King County, ie: King Dome!

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