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Concrete Contractor Settles 1 WTC Case

Wednesday, May 25, 2016

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New York and New Jersey officials have agreed to hand over $12.3 million to settle an ongoing dispute with a One World Trade Center contractor, according to various reports.

Ontario-based Collavino Construction Co. had originally sought $87 million from the Port Authority of New York and New Jersey in a dispute over costly delays in concrete work during the construction of the 104-story skyscraper. Amid the dispute, Collavino filed for bankruptcy.

Port Authority
Images: Port Authority of New York and New Jersey

One World Trade Center opened in 2014. The 104-story skyscraper cost nearly $4 billion to construct. The settlement involves concrete work at the tower.

The settlement would enable Collavino to pay 95 percent of debts owed to vendors and subcontractors, according to The Wall Street Journal.

The deal between the parties is contingent on both judge approval and one of Collavino’s subcontractors, Harris Rebar Atlantic Inc., accepting $1.2 million instead of $3.8 million it claims it is owed from the company, reports relate.

Costly Delays

Port Authority officials had hired Collavino Construction—a subsidiary of Collavino Group, a general contracting firm with a history of New York City projects—to perform concrete work on the $3.9 billion tower. The work included pouring concrete designed to protect the above-ground portion of the building from a street-level blast, according to the New York Daily News.

Citing court documents, The Wall Street Journal reported that Collavino hired about 50 trade vendors and suppliers to help with the project and was to be paid $352.57 million for the job.

However, the project experienced a two-year delay as the contractors struggled working on complex concrete components involved in the project, the Wall Street Journal reported.

The company finished the project in 2013, but reports it was stonewalled when it sought payment from the Port Authority. Various subcontractors also filed suit against Collavino for payment, according to reports.

Port Authority officials and Collavino agreed on the $12.3 million settlement after months of negotiation, reports relate.

Previous Legal Row

This is not the first time the tallest building in the Western Hemisphere has been at the center of a legal battle.

World Trade Center

Tishman Construction was selected to manage construction services on the new World Trade Center towers. The company was also the builder of the original Twin Towers in 1973.

In December, Tishman Construction, the firm behind the skyscraper’s construction and one of the largest construction concerns in New York City, admitted that it had overbilled clients nearly $5 million over a 10-year period, including the Port Authority.

“Through a systemic practice, Tishman Construction bilked its clients by charging them for unworked time and at rates higher than those bargained for by their clients,” U.S. Attorney Robert L. Capers said in a statement at the time.

Tishman agreed to pay more than $20 million in victim restitution and federal penalties to settle mail and wire fraud conspiracy charges in the case. Tishman’s remedial measures included the hiring of a compliance director; adopting a new code of conduct; and updating time-sheet recording and billing policies.

The company was also the builder of the original Twin Towers in 1973.


Tagged categories: concrete; Construction; Contractors; Disputes; Good Technical Practice; Lawsuits; North America; Subcontractors

Comment from Chuck Pease, (5/26/2016, 6:05 PM)

That is hilarious on the Tishman scandal. Wondering out loud how much dinero they bilked out of the TT project in 73 :)

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