Industry Spotlight

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Construction Litigation

Oxford wants $2 million in sports complex suit

The Anniston Star

"Oxford wants $2 million in damages from an architectural firm for alleged negligence...after ancient human remains were found at a project construction site."

"...The firm designed the city's multi-million dollar sports complex, which is currently under construction after the project had been on hold for more than a year...."

"The lawsuit alleges Barge, Waggoner, Sumner and Cannon was negligent and breached its contract with the city by failing to properly advise, supervise and manage the project, resulting in the discovery of the remains after the project had begun...."

Suit in, suit out

The Lake Oswego Review

"...[T]he contractor that worked to remedy water infiltration deficiencies...contends the school district delayed payments and caused cost overruns....It says the district owes it $2.5 million."

"The school district originally filed a $1.2 million claim against Robinson Construction in July 2009 after administrators discovered the water infiltration and its damages."

"...[J]ust this fall the gym and wrestling room at Lake Oswego High School were closed due to structural issues that could potentially cause a collapse in a severe weather event, such as an earthquake."

Contractors seek millions in Ossining

Westfair Online

"The owner of Atria on the Hudson, a senior-living community in Ossining, has been sued by a Long Island contractor seeking...to collect about $4.1 million for unpaid construction work completed last summer on Atria's $21.6-million renovations project."

"The general contractor...has gone to state Supreme Court in Westchester County to be put first in line ahead of 17 subcontractors seeking payments totaling nearly $2.1 million...."

"...While awaiting those overdue payments...the subcontractors have filed mechanic's liens against the property owner with the Westchester county clerk."

Construction Disputes

Sports Park problems persist

The Monitor

"Problems at the Brownsville Sports Park continue to rise along with its cost, which has tripled over the course of the project."

"Amid new problems comes possible litigation regarding the construction of the facility, although...the Brownsville Community Improvement Corp. are keeping mum on the issue."

"Former BCIC boards, with the blessing of past city commissions, have spent slightly more than $35 million on the Sports Park since 2002 when it was first envisioned as a $10 million facility."

Duke To Sue Vendors Over $1B Plant Overrun

TheIndyChannel.com

"Duke has been plagued with not only massive cost overruns, but with fights with its chief vendor, GE, and its engineering firm, Bechtel."

"...Duke will sue those companies once construction is complete and will turn over any proceeds from the lawsuits to customers."

"'Serious mistakes have been made, imprudent decisions reached. Disastrously poor management has occurred by Duke,' said Chief Deputy Consumer Counselor...."

Construction Delays

Delayed Peace Bridge hits one year milestone

Global Calgary

"...Graham Infrastructure had been contractually obligated to have the project complete by October 31st, 2010, but ongoing construction issues have caused major setbacks."

"The opening date has been pushed back three times since due to various challenges in bringing Calatrava's intricate design to reality....[I]nspectors flagged deficient welds...."

"Officials expect the project bill will be over the $24.5-million budget and the city says it plans to fight paying any overruns...."

Power PSU engineers blame Reliance Infra for delays in DVC's Raghunathpur thermal project

The Economic Times

"Engineers of power PSUs have blamed Reliance Infrastructure for delays...and demanded its blacklisting for alleged defects in the construction...."

"A spokesperson of Reliance Infra, which is the EPC contractor for the project, claimed that the issue had been resolved and construction at the site was continuing."

"'The deployment of lesser quantity of steel was not an unintended or inadvertent error but an action of calculated and deliberate fraud for which the case should be handed over to the CBI as well as Technical Examiner wing of CVC,'...."

Construction Defects

Deficient wall construction cited in fatal Gatlinburg Wastewater Treatment Plant collapse

Knoxville News Sentinel

"The assessment...states that although the design of the basin was...found to be adequate, the cause of the...failure at the Banner Road plant was 'a deficiency in concrete wall construction.'"

"What the engineer called a 'cold smooth joint' led to leakage of acidic waste water across the joint, and 'as a result, corroded the rebar splice couplers over a number of years.'"

"Blueprints for the basin were designed in 1992, and shortly after the basin was constructed in 1996, the north wall of the basin had cracks and a bowed wall and walkway...."

Construction Costs

Legislative auditor's report criticizes Jefferson Performing Arts Center project

The Times-Picayune

"Jefferson Parish President...had no idea that a $5.6 million change order to the Jefferson Performing Arts Center approved in June 2009...had previously been rejected by one of the parish's top engineers."

"The original bid for the facility...was $26.56 million. The Jefferson Parish Council then approved seven different change orders, adding a total of $18,145,682 to the price tag."

"The report found several deficiencies in the planning and oversight of the center, from architectural issues that accounted for some of the extensive change orders...."

Tunnel costs rose by $298 million over time

The San Diego Union-Tribune

"Before the San Diego County Water Authority approved building an 11-mile tunnel...in 2005, the engineering firm estimated the project would cost $161 million."

"...[W]hen General Manager Maureen Stapleton spoke before the San Diego City Council to explain a rate increase in late January, she placed the project cost at $459 million."

"The tunnel is the subject of a lawsuit between the water agency and its general contractor..., which is seeking up to $140 million for breach-of-contract and other complaints."

Plan says California high-speed rail to cost $98B

Associated Press

"A business plan...gives the most detailed look to date at California's ambitious plan to link its major cities by high-speed rail, projecting the cost has ballooned to nearly $100 billion over 20 years, accounting for inflation."

"...The new business plan calls for the rail line to be built in phases, which would break the project's costs into manageable pieces - about $2 billion a year."

"California voters and the Obama administration already have committed nearly $13 billion...but the plan has faced increasing scrutiny about whether it will ever become reality."

Industry Spotlight

Construction 'Down Under' on the Up-and-Up with Industrial Projects

Australia's construction market anticipates a 10 to 12 percent expansion over the next several years in engineering and commercial construction work, according to a recent outlook survey. A flurry of investments by international corporations in LNG, power, mining, and oil-related projects are fueling this growth and proving its newfound status as an industrial heavy hitter. Read on in this month's issue to learn more about these economic sectors set for a boost "down under."

Australia's Resources Sector to Boost Engineering, Construction

International Business Times

"Resource-related projects are expected to significantly boost the engineering and commercial construction sectors over the 2011-12 and 2012-13 financial years...."

"...Significant mining investment and the strong pipeline of heavy industrial projects including oil and gas processing, will drive this growth...."

"...Other civil mining-related projects, such as port upgrades, as well as infrastructure projects including expanding roads and railways, will also contribute to the rise in activity."

Australia Poised to Become Leader in LNG Projects, Spurs 14% Increase in Investment Spending

International Business Times

"...Australia will become the world leader in the development of liquefied natural gas projects, and LNG could become its third leading commodity export, next to iron ore and coal...."

"Construction has been approved to start next month on the A$29 billion Chevron Corp. Wheatstone liquefied natural gas project in Western Australia, while in Queensland, the A$20 billion Australia Pacific liquefied natural gas project...will start later this year...."

"...Australia has more than 15 liquefied natural gas projects still under consideration, while liquefied natural gas production is expected to triple within 10 years."

It's a gas: $3.6 billion investment in Queensland power plants

Brisbanetimes.com.au

"New gas-fired power stations will be built in Ipswich and Gladstone in a major $3.6 billion investment deemed critical to prevent electricity supply shortages in Queensland."

"The two new plants, which will be built by Victorian-based power company TRUenergy within the next 10 years, were designed to target electricity of Queensland's population and economic growth."

"'This investment...will mean around 1000 jobs in construction from early 2013 for each project and will increase the state's overall electricity generation capacity by 20 per cent,'...."

BHP, Mitsubishi approve $4.2bn Australian coal investment

Mining Weekly.com

"Mining giant BHP Billiton and its joint venture partner, Mitsubishi Development,...approved $4.2-billion for the development of the Caval Ridge coal mine and the expansion of Peak Downs...in Queensland."

"The investment would include the construction of a new coal handling and preparation plant...to process production from the mine, as well as from the Peak Down expansion."

"...BHP earmarked $9.5-billion to expand its iron-ore and coal operations in Australia,...jointly investing $5-billion into three new Queensland coal operations."

Oil company set to drill near Yambuk

The Standard

"A lucrative oil deposit located beneath farmland near Yambuk could net more than $100 million for an energy resources company."

"If the operation is successful, the oil rig will be the first on-shore commercial oil extraction in Victoria since a 1920s project based at Lakes Entrance."

"Bass Strait Oil operations manager Gordon Wakelin-King said the three-million-barrel oil reserve was significant by on-shore Australian standards."

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