Dive Brief:
- The Port Authority of New York and New Jersey is set to pay Canadian contractor Collavino Construction Co. $12.3 million as a settlement in an $87 million dispute over concrete work performed at the $3.9 billion One World Trade Center, according to The Wall Street Journal.
- The payment will allow Collavino, which filed for bankruptcy in 2014, to pay 95% of what it still owes subcontractors and vendors.
- Collavino — a long time New York City-area contractor — and the Port Authority negotiated for months over delay-related charges stemming from a conflict with the project’s steel work schedule, according to The Journal.
Dive Insight:
The deal between the Port Authority and Collavino still must get court approval and is contingent on one of Collavino’s subcontractors, Harris Rebar Atlantic Inc., accepting a $1.2 million offer instead of the $3.8 million it claims it is owed.
This case isn't the only legal trouble to arise from One World Trade Center, was opened in November 2014. In December, Tishman Construction acknowledged — because of what it called flawed company policies — that it overbilled clients by nearly $5 million between 1999-2009, One World Trade Center included. Prosecutors alleged the overbilling was intentional, and Tishman agreed to pay more than $20 million in victim restitution and federal penalties to settle mail and wire fraud conspiracy charges.
According to the Council on Tall Buildings and Urban Habitat, One World Trade Center, at 1,776 feet, is the tallest building in the U.S. and the fourth tallest building in the world. However, including the buildings currently under construction, it falls to 11th place. Additionally, once Central Park Tower is complete in 2019, it will be only 1 foot shorter than One World Trade Center.