Who will pay for MoPac cost overruns? Agency, contractor deal in sight

The Austin American-Statesman ^ | September 24, 2017 | Ben Wear

[Tolerance Sucks Rocks]

They’ve butted heads and talked of lawsuits as the MoPac Boulevard toll lane construction project has dragged on two years beyond its target completion date.

Now the Central Texas Regional Mobility Authority and its toll project contractor appear to be near a financial settlement.

The mobility authority board, in a specially called meeting scheduled for Tuesday morning, will consider an agreement with CH2M, the Denver-based engineering and construction firm that in April 2013 agreed to design and build the 11-mile project.

The contractor agreed then to a fixed price of $137 million. But in a March 2017 memo, written when the project was a year and a half behind schedule, CH2M argued that it should be paid $240 million — a figure that doesn’t include about $120 million the company has already written off, according to quarterly reports.

The task now is to strike an agreement on how much more the mobility authority will pay and how much more CH2M will post as losses.

Mobility authority officials confirmed last week that a proposed settlement was nearly ready after protracted negotiations with CH2M but declined to release details about its terms. Mike Heiligenstein, the authority’s executive director, said it would resolve all of CH2M’s claims, “known and unknown.”

“This has moved away from litigation and toward, ‘Let’s look at some of the things we think have some merit,’ ” Heiligenstein said last week. “We’re working through all that and … we’ll have a meeting to try and wrap up all of this into a package. That way we don’t end up in a courthouse for years and years.”

[Red Badger]

Contracts aren’t what they used to be.....................

[bgill]

Somehow, the taxpayers will pay.

[Terry Mross]

Ah, MOPAC. When Ann Richards was state treasurer she transferred all the state’s banking to another bank. Just so happened that bank gave her and two others a huge loan to but a bunch of land SW of Austin. Yep, right where MOPAC went through. That’s what a political type told me.

[Terry Mross]

Ah, MOPAC. When Ann Richards was state treasurer she transferred all the state’s banking to another bank. Just so happened that bank gave her and two others a huge loan to but a bunch of land SW of Austin. Yep, right where MOPAC went through. That’s what a political type told me.

[Army Air Corps]

Gee, ya make it sound like Ann Richards was a horribly corrupt insider. ;-)

[af_vet_rr]

Somehow, the taxpayers will pay.

Just like they seem to be continuously paying for the constant rebuilding of I-35 between Waco and Dallas.

I've told people that I can remember a time when I-35 between Waco and Dallas was relatively free of construction. Most think I'm crazy.

[V K Lee]

She be evil. Guard your silver. Silver bullets can be made from silver spoons.

[Army Air Corps]

Oh, I know. She is quite dead, so all she can do now is continue to vote for Democrats.

[Army Air Corps]

I-35 - The parking lot cleverly disguised as a highway.

[camle]

only in government can a company enter into a contract to provide a product or service for a certain amount, them treble the amount due...and the government gives it to you. more incentive to low-ball your bids...

[af_vet_rr]

If you wanted to right a book about getting rich relatively fast, write one about, creating construction or equipment leasing company, and getting yourself a piece of that sweet I-35 pie.

Hell, trying to figure out how much taxpayer money as been spent on I-35 between Waco and Dallas would be worth half a dozen books.

[bgill]

You’re right. Waco to Dallas has been under construction since forever.

[camle]

abb Richards? the one born with a silver hoof in her mouth?

[af_vet_rr]

You’re right. Waco to Dallas has been under construction since forever.

It really does make you wonder. Next time you travel that stretch, keep an eye out on all of the equipment you see along the construction zones. Much of it's leased. And look at how many times certain sections seem to be rebuilt over and over.

I could see it every 5 years or so due to heavy traffic (NAFTA trucking, Texans traveling between cities, etc.) but I've encountered too many sections that seem to be finished, and then go back into construction not long after.

Somebody is getting rich. Either they are doing a piss-poor job of highway construction, allowing the contractors to continuously have work along there, or the project(s) are designed to make a lot of work for a lot of people.

[867V309]

I've told people that I can remember a time when I-35 between Waco and Dallas was relatively free of construction.

I remember when I35 had a roundabout in Waco.

[Terry Mross]

Ya’ think? Carpet muncher, too.

[Fiddlstix]

Queen Ann corrupt? Perish the thought!
</sarcasm>

[libertylover]

Contracts aren’t what they used to be.......

A lot of times the government moves the goalposts after the project gets started.

[Army Air Corps]

She and Molly Ivans were thick as thieves.