Tutor Perini Corporation ( TPC ) announced that it's Perini-Kiewit-Cashman (PKC) Joint Venture has succeeded in a long-standing dispute with the Massachusetts Department of Transportation (MassDOT) regarding the Central Artery/Tunnel Project in Boston.
PKC pursued 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 that has been ongoing in excess of 15 years. During the construction, MassDOT ordered PKC to perform changes to the work and issued related direct cost changes, excluding time delay and inefficiency costs.
Certain claims of PKC were presented in front of a Disputes Review Board (DRB) which consists of three construction experts. After that DRB issued several awards and interim decisions in favor of PKC's claims. The legal tussle started when MassDOT asserted counterclaims saying that the DRB exceeded its authority.
However, the Superior Court in its decision affirmed the DRB's role as the binding arbitrator and ruled that each of the claims at issue for the third and fourth DRB panels are subject to the binding dispute resolution process. DRB's awards on these claims are also reinstated.
Tutor Perini which is the managing partner and holds a 56% interest in the joint venture, is content with court's decision on the case. The DRB's decisions and awards, including accrued interest to date, exceed $80 million as the amount due currently to the Joint Venture.
The decision allows for substantial additional non-binding DRB awards which will be either arbitrated or resolved between the parties. This result has supported Tutor Perini and strengthened its position in the litigation pursued by the company all these years.
Sylmar, CA-based Tutor Perini Corporation is a leading civil and building construction company offering diversified general contracting and design-build services to private clients and public agencies globally.
Tutor Perini currently sports a Zacks Rank #2 (Buy).
Other stocks worth considering in the same industry include EMCOR Group Inc. ( EME ) Sterling Construction Co. Inc. ( STRL ) and TRI Pointe Homes, Inc. ( TPH ). All these stocks carry a Zacks Rank #2.