We previously reported the decision of the Board of Contract Appeals last year declaring that Kiewit-Turner was excused from performance and entitled to stop construction, mid-project, based on the VA’s material breach of Contract in the construction of the Aurora VA Medical Center. (Kiewit-Turner, a joint venture, CBCA 3450, 2015-1 BCA P35,820 (December 9, 2014).
The Board’s decision was based on VA’s failure to provide a design that could be constructed within its budget limitations and VA’s inability to obtain funding to complete the project. The Board decision referred to VA mismanagement and cited testimony describing project management “as the least effective and most dysfunctional staff on any project that he had ever seen.”
Earlier this month the Board of Contract Appeals endorsed a settlement with Kiewit-Turner, resolving claims exceeding 100 million dollars. CBCA Order – Kiewit Turner (January 12, 2016)
Congress subsequently provided additional funding and, in October 2015, the Army Corp of Engineers awarded a $571 million contract to Kiewit-Turner to complete the project. The projected completion date is January 23, 2018.
