Dive Brief:

• A dispute between Harris Construction and Tulare Regional Medical Center has been resolved with Harris walking away from the unfinished project and the hospital agreeing to pay the contractor up to $7.9 million.
• The project is now years behind, but the hospital board expects to hire its management company's construction subsidiary to finish the five-story addition.
• In a familiar scenario for construction lawsuits, Harris said the hospital gave it incomplete and defective plans, and only cared about money. The medical center disputed that, saying Harris caused delays, pushed up costs and did not provide enough workers.

Dive Insight:

The total amount of the settlement depends on whether Tulare gets an expected donation. If it does, Harris gets $7.9 million. If the donation falls through, $1 million comes off the settlement. Meanwhile, the hospital will have to raise enough money to finish the project. Harris said in its suit that it was owned $17.7 million and has lost money during the ordeal.