Colorado DOT Sues Flatiron-AECOM JV Over Late $204M Highway Project

Abstract

Of Transportation is suing a joint venture of Flatiron and AECOM over a highway project it says is still incomplete more than three years after the original deadline. The lawsuit, filed in Colorado's Denver district court on Aug. 1, accuses the joint venture of breach of contract, and also accuses several surety firms of failing to ensure the performance of the contract. CDOT awarded a $204.3-million design-build contract to the joint venture in June 2016 for its C-470 project. In the complaint, CDOT accuses the joint venture of "Mismanagement" and making "Bad-faith misrepresentations." It says the contractor failed to provide it with a timely notice of delay and failed to maintain required risk insurance. The joint venture had previously submitted a request for equitable adjustment on the contract in 2017, saying CDOT had caused delays. Los Angeles-based AECOM Technical Services Inc. brought the suit against the joint venture in October 2019 in Colorado U.S. District Court, alleging it was only partially paid for its design services it provided as a subcontractor to the JV for the project. In response, the Flatiron-AECOM joint venture denied most of the accusations and filed a counterclaim against AECOM Technical Services, alleging many designs for the project deviated from the preliminary design.