Gilroy, CA

Gilroy, CA: (Apr-18-07) The city of Gilroy has agreed to pay its contractor, SJ Amoroso, for construction delays that deviled the new police headquarters, compensating the company for lost business. The settlement has gone a long way to significantly increase the price of the building by $4.49 million, to more than $30 million. The charges filed against the city stemmed from the losses Amoroso suffered as a result of delays resulting from the Gilroy building's design, design conflicts and delays, which resulted in 80 change orders. Amoroso put the figures at a total of 177 calendar days at $9,000 a day. The city dodged paying for replacement panels, arguing that Amoroso's contract required them to protect their work. The panels developed mold after workers failed to protect their work from winter rains. Amoroso will pay the entire $880,000 it cost to make the repairs. In a settlement reached, the city agreed to pay $1.6 million to the contractor, resolving all allegations. [GILROY DISPATCH: DELAYED CONSTRUCTION]

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Published on Apr-24-07