IndyGo sues consulting company over $4.7M in construction overruns
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IndyGo’s transportation corporation is suing over $4.7 million in construction cost overruns for the Julia M. Carson Transit Center that it says were caused by an infrastructure consultant’s failure to properly investigate the construction site for potential complications.
The Indianapolis Public Transportation Corp. filed a lawsuit on Friday in Marion County Superior Court against Dallas-based AECOM USA Inc., which has an office in Indianapolis, and URS Corp., which was acquired by AECOM.
Legal representatives for AECOM could not immediately be reached for comment.
The lawsuit says the transportation corporation entered into an agreement with URS Corp. in April 2013. URS was later acquired by AECOM, which was assigned to serve as lead designer for the construction of the Julia M. Carson Transit Center at 201 E. Washington St.
As lead designer, AECOM led development of the transit center’s design, which included responsibilities for investigating potentially unsuitable soil on the design site, IndyGo says.
AECOM’s design for the transit center was finalized in July 2014, at which point IndyGo awarded a construction contract to Weddle Bros. Building Group LLC.
In November 2014, Weddle began archaeological monitoring of the construction site, and almost immediately found unsuitable soils in the footprint of the proposed building area, according to the lawsuit. Weddle also discovered numerous structures, like brick and foundation wall remnants, on the site, preventing the company from continuing its work.
Because of the unsuitable conditions of the building site, construction was delayed, requiring more compensation and deadline rescheduling for Weddle, the lawsuit claims.
IndyGo says that for over a year, AECOM led it to believe that the soil on the building site was appropriate for construction.
In addition, IndyGo claims AECOM didn’t inform it that a full data-recovery level archaeological report would have to be prepared for the Federal Transit Administration, which largely funds and regulates IndyGo, until after AECOM finalized its design, also leading to additional costs.
“AECOM ignored all the red flags, and in so doing deprived (IndyGo) of multiple opportunities to make timely, informed decisions on how and when to proceed with the Project, or even proceeding with the Project at this location. Ultimately, AECOM’s oversights constitute a breach of the standard of care and of the Contract resulting in millions of dollars of cost overruns to IndyGo – costs that largely were avoidable,” the complaint says.
According to the contract between the IndyGo and AECOM, the project was supposed to be substantially completed in October 2015 but didn’t reach that stage until June 2016. IndyGo says it incurred cost overruns in excess of $4.7 million as a result of AECOM’s actions and failures.
IndyGo is suing for breach of contract, breach of express contractual warranties, and breach of warranty of the adequacy of the plans and specifications. It is seeking damages “in an amount to be determined.”