LA Metro Ends Long Dispute, Agrees to Pay $300 Million More to Kiewit for 405 Freeway Widening Project

Los Angeles Times reports, “The Metropolitan Transportation Authority [LA Metro] has agreed to pay nearly $300 million more to [Omaha-based Kiewit Corporation,] the contractor of the 405 Freeway widening project, capping a years-long dispute over responsibility for schedule delays, design changes and cost overruns. The settlement will push the cost of the controversial Sepulveda Pass project above $1.6 billion, about 55% higher than the original budget.” According to the Times, “In a report to [LA Metro] directors, staff members wrote that the ‘significant lessons learned’ from the . . . settlement included the importance of ‘detailed underground utilities investigations’ before beginning a billion-dollar project.” [Links added.]

Omaha World-Herald quotes Kiewit spokesman Bob Kula as commenting, “We’ve been working positively with Metro in Los Angeles and appreciate the significant effort made by the Metro board and leadership to help resolve key issues on the I-405 project.”