A private arbitration panel has awarded one of the largest settlements ever in Connecticut — $9.6 million — to the defunct White Oak construction company for costs associated with state-created delays on a major highway project in Bridgeport.
The panel concluded that the state's delays in planning and obtaining permits for the northbound stretch of I-95 forced White Oak to delay its work. The panel concluded that the state then refused to grant White Oak time extensions under the contract and tried to penalize White Oak for late work.
The contract was one of several let by the state in the 1990s to improve and rebuild northbound and southbound I-95 through Bridgeport. The state hired White Oak, the low bidder at $49 million, to work on the elevated northbound lanes, above the Bridgeport waterfront.
While the overall award to White Oak, which had been based in Plainville, was $9.6 million, the arbiters awarded $1.2 million to the state for costs attributable to White Oak. Even when considered as a net award of $8.4 million, it is among the largest recalled by construction experts.
"We hope the state will pay the award," said White Oak attorney Ray Garcia, "rather than prolonging the case by pursuing an appeal and incurring additional interest."
The state Department of Transportation declined to comment.
White Oak sought $48 million when it entered arbitration. The state sought $20 million.
The panel concluded that the state's delays in planning and obtaining permits for the northbound stretch of I-95 forced White Oak to delay its work. The panel concluded that the state then refused to grant White Oak time extensions under the contract and tried to penalize White Oak for late work.
The contract was one of several let by the state in the 1990s to improve and rebuild northbound and southbound I-95 through Bridgeport. The state hired White Oak, the low bidder at $49 million, to work on the elevated northbound lanes, above the Bridgeport waterfront.
While the overall award to White Oak, which had been based in Plainville, was $9.6 million, the arbiters awarded $1.2 million to the state for costs attributable to White Oak. Even when considered as a net award of $8.4 million, it is among the largest recalled by construction experts.
"We hope the state will pay the award," said White Oak attorney Ray Garcia, "rather than prolonging the case by pursuing an appeal and incurring additional interest."
The state Department of Transportation declined to comment.
White Oak sought $48 million when it entered arbitration. The state sought $20 million.