San Francisco Chronicle

Bay Bridge builder wants $ 50 million

- By Jaxon Van Derbeken

The main contractor on the new eastern span of the Bay Bridge says Caltrans owes it nearly $ 50 million — a large chunk of what could add up to $ 140 million in cost overruns on the project.

Caltrans revealed the demand Thursday from the main contractor, a joint venture called American Bridge/ Fluor. Officials did not say what the disputed costs were for, but they acknowledg­ed that the state will probably have to pay at least some of them, depending on the outcome of an expected arbitratio­n process.

“As a risk manager, I need to be conservati­ve in my approach,” said Caltrans official Patrick Treacy, who said he was including the full $ 49.9 million bill from American Bridge/ Fluor in his estimate that the bridge could end up $ 140 million in the red. “I’m trying to capture the pessimisti­c outlook.”

Treacy delivered his estimate at a meeting in

Oakland of the bridge project’s oversight panel, consisting of the heads of Caltrans, the state Transporta­tion Commission and the local Metropolit­an Transporta­tion Commission.

“You’re assuming we basically lose all of our arguments” with American Bridge/ Fluor, said Steve Heminger, executive director of the Metropolit­an Transporta­tion Commission and a bridge project board member.

“The majority of them, yes,” Treacy said. “To get this, we need a bad result in arbitratio­n.”

Caltrans, however, has its own issues with American Bridge/ Fluor. In September, it demanded $ 11 million from the joint venture for problems with high- strength steel rods on the bridge, including the failure of 32 of them on seismicsta­bilizing structures in 2013. Caltrans also held American/ Bridge Fluor responsibl­e for flooding problems in the bridge tower’s foundation that could expose more than 400 anchor rods to corrosion.

American Bridge/ Fluor challenged the penalty, and that issue will now be part of the arbitratio­n, said Andrew Fremier, deputy director of the Metropolit­an Transporta­tion Commission.

American Bridge/ Fluor representa­tives have not commented about the project, but they have previously defended the quality of the joint venture’s work, and said they would help Caltrans fix the tower rods problem. They did not appear at the meeting Thursday.

Constructi­on delays and environmen­tal protection efforts are contributi­ng to the potential $ 140 million deficit on the bridge project, which already has cost $ 6.4 billion. Transporta­tion officials have said there is enough money in toll- payer- financed funds to cover the repairs without having to bump up the cost of driving across Bay Area bridges. Tolls were last raised in 2010.

Heminger expressed frustratio­n that costs continue to escalate, including tens of millions in Caltrans staffing expenses as demolition on the old eastern span and other work continues. He said the panel has tried to cut such costs, without success.

“It’s not making sense to me — that ( overhead) number continues to grow every quarter, no matter what we do,” Heminger said.

“We do have issues where there’s a lot of uncertaint­y about them,” said Treacy, referring to costs for environmen­tal measures to protect nesting birds on the old span and reduce lead contaminat­ion in the bay as the structure is dismantled.

“It’s not making sense to me — that ( overhead) number continues to grow every quarter, no matter what we do.” Steve Heminger, executive director, Metropolit­an Transporta­tion Commission on the looming red ink

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