Tunnel Project Problems

Sacramento, CA: (Apr-04-08) The El Dorado Irrigation District brought charges against Traylor Brothers Inc., contractor, and MWH Americas Inc., a construction management firm, over the problematic Mill-Bull tunnel project. District officials stated that the suit was brought after investigations revealed that the tunnel had several construction defects. The approximately two-mile tunnel off Highway 50 between Whitehall and Riverton connects Mill and Bull creeks, bypassing a section of the El Dorado Canal damaged by flooding in 1997. The suit against the contractor, Traylor Brothers Inc., was filed in 2003, claiming the company breached its contract by delivering a defective product. In its defense, Traylor Brothers maintained the district owed the firm for work it did to complete the tunnel and correct the error.

Sources stated that the two sides had entered into a settlement, resolving the long standing dispute. Under the terms of the deal, a federal jury ruled against the district and awarded Traylor Brothers nearly $10 million in damages and attorney's fees. Following that verdict in 2006, the El Dorado Irrigation District has reached a settlement with the construction management firm MWH Americas Inc., agreeing to not pursue claims against it for the problem ridden project. [SACRAMENTO BEE: DISTRICT DROPS CLAIMS]

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Published on Apr-8-08