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| Granite Construction requests termination of contract in Oregon Granite Construction Incorporated announced that Granite Construction Company, a wholly owned subsidiary, has formally requested that the Oregon Department of Transportation ("ODOT") terminate its contract to build the US 20 Pioneer Mountain to Eddyville Design-Build project. The $130 million contract was awarded in July 2005 to Yaquina River Constructors, a joint venture of Granite and its majority-owned subsidiary, Wilder Construction Company. While clearing and excavating the site, numerous and massive landslides throughout the seven-mile project site were discovered. Some of these landslides are at critical sections of the project, including under bridge abutments. The additional costs and time associated with these slides is currently estimated to be approximately $61 million and would add two years to the duration of the project. After conferring with ODOT on the most cost effective way to deal with these differing site conditions, Granite requested that ODOT terminate the original contract with YRC. ODOT responded in writing that it is willing to consider a negotiated contract termination. The agency will discuss the proposal with YRC in the coming weeks to determine if termination would be in the best interests of Oregon taxpayers. The scope of the original contract included the construction of at least eight new structures over creeks, rivers and a railroad and also included construction of retaining walls, culverts and drainage improvements. The project was originally scheduled to be completed in December 2009. write your comments about the article :: © 2007 Construction News :: home page |