May 9, 2012
Granite Construction‘s joint venture, Yaquina River Constructors (YRC), and the Oregon Department of Transportation (ODOT) have resolved their claims in a settlement that includes a mutually agreed termination of the ODOT-YRC design-build contract on the U.S. 20 Pioneer Mountain to Eddyville project.
“We are pleased to have reached a resolution to what has been an extremely challenging project for all parties involved,” said James H. Roberts, Granite president and CEO, in a written statement. “While we were confident in our position regarding the disputes with ODOT, we believed it to be in the best interest of the company and its stakeholders to resolve this matter and avoid the cost and distraction of protracted litigation.”
The agreement between ODOT and YRC ends YRC’s contractual obligation to complete the project. Termination of the contract is by mutual agreement and not a termination for default. The terms of the settlement also include that ODOT will waive claims it has against YRC, release to YRC approximately $4.3 million in retention monies and rescind the Notice of Default it sent to YRC in March 2012. Also, YRC will waive claims it has against ODOT and pay $15 million to ODOT. Granite confirms that the settlement will not have a material impact on the company’s financial position or operations.