Cali Problems: Orange County Streetcar Contractor Sues OCTA for $50 Million

The Orange County Transportation Authority (OCTA) is now facing a lawsuit for $50 million by a business it hired to build the rail system for the OC Streetcar, according to a suit submitted previously this month in the county’s Superior Court.

Walsh Construction, the company employed by the transportation authority, said in the Mar. 4 legal action that OCTA had actually breached its $220 million contract to construct the course, noting that while the degree of the damages is not yet known, it will be at the very least $50 million.

According to the claim, OCTA breached the agreement by demanding Walsh work beyond the demands of the contract without increasing the agreement cost, failing to give complete plans for the job, and also misleading Walsh into thinking the scope of the agreement had currently been coordinated by OCTA with governing jurisdictions affected by the task.

Walsh also claims that OCTA failed to divulge information that affected the building company’s performance costs, consisting of the actual condition of the project varying from OCTA’s alleged condition in the bidding process records.

The transit authority was not willing to discuss the open litigation with the press due to potentially “compromising OCTA’s position or complicate any issues in dispute by discussing details,” but a spokesman told The Epoch Times that they do not want to lose focus on the project.

“OCTA is committed to completing the OC Streetcar project, which is already approximately 60% built, and work on the project continues,” OCTA spokesman Eric Carpenter said. “Our goal is to deliver OC Streetcar on our current timeline of March 2024 for the residents and business of Santa Ana and Garden Grove, and for the benefit of all Orange County.”

Epoch Times Photo
An artistic rendering of the OC Streetcar. (Courtesy of the Orange County Transportation Authority) 

Walsh is also asking that a court declare them no longer obliged to work on the project under the provided contract, along with extending the time allotted and also a settlement OCTA should pay Walsh for their work.

In the legal action, Walsh says it has totally done its duties in all of the conditions of the project.

“Walsh contends it is commercially impractical and unreasonable to proceed with the work unless the price to be paid by OCTA to Walsh for work is increased significantly, and OCTA has failed to acknowledge these facts,” the suit reads. “Walsh contends it is excused from any further performance obligation” on the project.

The OC Streetcar, a $509 million job, will be Orange County‘s first contemporary electrical streetcar, featuring a 4-mile course from Santa Ana’s dynamic Downtown to Garden Grove. It was made as a practical way for citizens to effectively reach the area they require without driving, with the no-emission train offering 10 drops in each direction.

H/T The Epoch Times

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