The court reinstated earlier awards by dispute review boards. The decisions and awards, including accrued interest to date, exceed US$80m (£48m) as the amount due currently to the joint venture.
The Perini-Kiewit-Cashman (PKC) Joint Venture had a long-standing dispute with the Massachusetts Department of Transportation (MassDOT) regarding project. Tutor Perini is the managing partner in the joint venture with a 56% interest.
The dispute is related to a series of claims for additional contract time and compensation against MassDOT for work performed by PKC on a portion of the Central Artery/Tunnel Project. During construction, MassDOT ordered PKC to perform changes to the work and issued related direct cost changes, excluding time delay and inefficiency costs. A three-member dispute resolution board (DRB) issued several awards and interim decisions in favor of PKC’s claims. MassDOT had sought and was successful in having the DRB’s binding awards vacated under the premise that the DRB exceeded its authority.
The decision this week, issued by Superior Court Justice Thomas Billings, affirmed the DRB’s role as the binding arbitrator. In issuing its decision, the court reinstated the claims.
Tutor Perini CEO Ronald Tutor said: “The Joint Venture is extremely pleased with the judge’s decision on the C11 case involving the Central Artery that has been ongoing in excess of 15 years. The Dispute Review Boards’ decisions and awards, including accrued interest to date, exceed $80,000,000 as the amount due currently to our Joint Venture. This still leaves substantial additional non-binding DRB awards to be either adjudicated or resolved between the parties. This decision certainly vindicates our position and the vigour with which we pursued this litigation over all these years.”