HART Could Seek Damages From STG For Delays

Written by Jennifer McLawhorn, Managing Editor
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Courtesy of Honolulu Authority for Rapid Transportation

HONOLULU – Honolulu Authority for Rapid Transportation (HART) could seek damages from STG due to delays in an airport segment of a project.

Honolulu Authority for Rapid Transportation (HART) could sue Shimmick/Traylor/Granite Joint Venture for “liquidated damages.” The damages could amount to as much as $40,000 daily, according to Honolulu Civil Beat. The delays come as crews are working to complete three rail stations in the airport segment. 

In July 2023, it was reported that STG sued HART for $99 million “over construction delays it blamed on HART,” which include failure to move utilities. RT&S reported that HART had settled with the contractor for $59.9 million in December 2023. The settlement changed the completion date, “requiring that the contractor finish four rail stations and the 5-mile stretch of guideway from Aloha Station to Middle Street by Feb. 29th.” Instead, it appears the work will not be complete until June.

According to the report, project director Vance Tsuda said “STG achieved ‘substantial completion’ for the guideway and the Pearl Harbor station, but not for three other stations.” Those unfinished are the Middle Street Transit Center station, the Daniel K. Inouye International Airport station, and the Lagoon Drive station. In response to an inquiry regarding liquidated damages for this latest delay, HART Executive Director Lori Kahikina said, “The settlement was end of February, so yes. . . We haven’t assessed them, but we are accruing them. The LDs started the day after the agreement date.”

HART says the original contract between it and STG “allowed for liquidated damages of up to $40,000 per day for delays.” A statement from HART said “work is pending delivery of materials to complete the work.” Additionally, the liquidated damages will be imposed because of the latest delays, and those liquidated damages will be deducted from future settlement payments that HART is required to pay from the settlement back in December.

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