UPDATE: Turner Construction and Santa Clara County have largely agreed to a deal that would return the ousted construction company to the 186-bed Valley Medical Center project, a source close to the negotiations told the Silicon Valley Business Journal. 

The new contract would reportedly be worth $85 million in additional costs to continue the project, which has been halted since Turner was fired in September. The source said the contract includes a 14-month timeframe for completion after it is signed, and an official announcement will likely come in the next few days. With the additional $85 million, Turner's contract for the total project is now at $466 million. The initial contract was $290 million. 

The deal between Turner and the county also reportedly stipulates that the current litigation against Turner, and the company's subsequent legal challenge, would be dismissed. Both parties would choose new management teams for the project, and Turner would negotiate subcontractor claims, according to the Business Journal. Neither the county nor Turner have officially commented on the new report.

Dive Brief:

• In a surprising development in the Valley Medical Center saga, Santa Clara County is reportedly in talks with ousted Turner Construction to resume work on the facility, according to NBC Bay Area.
• The county fired Turner in September, claiming the company failed to meet deadlines that put the project years behind schedule and ran up costs. The county has also filed a lawsuit against Turner for damages in "the tens of millions," and Turner subsequently filed a legal challenge to strike significant portions — which it considers "false, improper or irrelevant claims" — of Santa Clara County's lawsuit against the company.
• County Executive Jeff Smith told NBC Bay Area that the county is also in talks with several other contractors to complete the work. Turner has not commented on the latest development.

Dive Insight:

The original completion date for the medical center was 2012 and then September 2015, but the county pushed the deadline back several times until they finally fired Turner, according to NBC Bay Area. Boldt Construction stepped in to assess the costs of finishing the project and found it might take another $126 million and at least 16 months to complete.

If Turner and Santa Clara County can put their differences aside and focus on completion, the choice of Turner to complete the work likely makes the most sense. Turner knows the job and the subcontractors and could jump right back in to resume work, unlike a contractor who would be coming onto the job fresh.

However, the major legal problems between the county and company would need to first be taken care of before moving on to resume work. "We wouldn't bring Turner back in unless there was an ability to get rid of litigation and to be sure that we had a time schedule that worked," Smith told NBC Bay Area.

Boldt’s walk-through and analysis of the partially complete medical facility uncovered water damage on several floors, mold and had evidence of animal and pest infestation. Boldt also found an incomplete building envelope and some exposure to the outside elements. The cost to repair any damage was not included in Boldt’s estimate of what it would take to complete the project.

In September, county officials alleged the contractor had not given enough time and attention to the project, resulting in significant work delays that cost Santa Clara County $36 million annually in lost revenue plus $30 million for each year that work continues past the initial completion date.

After being accused of breach of contract, Turner spokesman Larry Kamer said that it's "wrong" to blame all the delays on the construction company. He said hundreds of the county's unexpected change orders and thousands of requests for design changes and clarifications added time to the project.